CEBU, Philippines - Cebu City South District Rep. Rodrigo Abellanosa has filed a bill seeking to reduce the income tax rate to 15 percent from the current 32 percent.
Abellanosa said his proposal will translate to a higher “take home†pay for income earners.
“Higher take home pays for income earners will ease some of the burden from our people and diminish the need to look for employment outside the country,†Abellanosa said.
Abellanosa, vice chairman of the House committee on small business and entrepreneurship development, pushed his proposal through House Bill 4372.
“As movements to increase salary levels have shown to be minimally productive because of the opposition primarily of the private sector, it is necessary that the government seeks other ways of making our countrymen’s lives easier, thus making local employment more attractive,†he said.
House Bill 4372, now pending at the committee on ways and means, seeks to amend further Section 24 (A) (2) of the National Internal Revenue Code of 1997, as amended, thereby reducing income tax rates.
Abellanosa’s proposal is the third bill passed to this effect after Valenzuela City Rep. Magtanggol Gunigundo filed House Bill 4099 seeking to lower individual and corporate income tax rates to 15 percent from the current 32 percent and 30 percent, respectively.
Quezon Rep. Angelina Tan also filed HB 4278 seeking to reduce the income tax rate of individuals from the present 32 percent to 15 percent for the country to fully benefit from the Association of Southeast Asian Nations Integration in 2015 and to help the country’s workforce cope with inflation and the higher costs of living.
In HB 4372, Abellanosa proposed that the tax rates for those earning P20,000 to P70,000 be lowered from the present 32 percent to 15 percent beginning Jan. 1, 2015, then 13 percent beginning Jan. 1, 2016 and 10 percent staring on Jan. 1, 2017. (FREEMAN)