Bizmen welcome bill exempting small earners from taxes

CEBU, Philippines - A group of small businessmen in the cities of Mandaue, Lapu-Lapu and Cebu and neighboring municipalities yesterday announced its support to the proposed bill in the Senate exempting marginal income earners like farmers, fishermen, tricycle drivers and sari-sari store owners from payment of income tax.

Senate Bill No. 2227 filed by Senator Bam Aquino cited the need of exempting the marginal earners from the payment of income tax.

Rey Calooy, president of the Filipino-Cebuano Business Club Inc., said they were happy of Senator Aquino's positive response to their proposal.

Calooy said that during Aquino's visit in Cebu, members of their association, mostly small businessmen, aired their concerns to the young senator.

According to Calooy, they raised the issue of marginal income earners and the need to exempt the said sector from paying annual income tax dues.

In his bill, Senator Aquino said MIEs or self-employed individuals who have an income not more than P150,000 annually should be spared from paying income tax just like minimum wage earners.

Senator Aquino said granting income tax exemption to minimum wage earners while subjecting the small businessmen to income tax is contrary to the mandate of the Constitution, "these building no substantial distinction between them in terms of earning capacity."

The neophyte senator made the move after the Bureau of Internal Revenue Memorandum Circular NO. 7-2014 required micro-entrepreneurs to pay income taxes.

The circular further said MIEs include agricultural growers and producers, such as farmers and fishermen selling directly to consumers, small sari-sari stores, small carinderias or turo-turos, and drivers and operators of a single unit tricycle.

Instead of helping MIEs, Senator Aquino said charging them with taxes only becomes a burden to a sector situated below the poverty line.

 Aquino's bill classifies MIEs as self-employed individual deserving gross sales or receipts not exceeding P150,000 during a 12-month period, which will be used principally for substance or livelihood. — (FREEMAN)