Latest House bill seeks to halve income tax to 15% from 32%

[twEATer]

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Individual earners might soon pay less than half of the income tax culled from their paychecks twice a month should the proposal of Valenzuela City Representative Magtanggol Gunigundo become a law.

Under House Bill 4099, the income tax rate for individuals will go down from 32 percent of gross income to 15 percent and rates corporate tax will be reduced from 30 percent to 15 percent.

The measure, which was filed on March 10, seeks to amend certain provisions of the National Internal Revenue Code by restructuring the income tax system.

Gunigundo told reporters in a press briefing Tuesday that lowering the individual income tax rates will stimulate the economy because employees and other workers will have more disposable income, which they can use either as capital for business or to purchase goods subject to the value-added tax (VAT).

“Increasing disposable income has positive implication for consumption and investments. Kung dadami ang gagastos, magkakaroon ng spike sa demand. The increase in sales will lead to the creation of more jobs in order to meet demand,” he said.

The lawmaker acknowledged his proposal will cause the government to lose P90 billion in tax revenues should it be enacted into law, noting that lower taxes might encourage more Filipinos to pay what is due to the Bureau of Internal Revenue that will in effect increase the tax base.

The big picture

“The bigger picture here is that we will gain much more [from reducing income taxes] in the long run with having a more robust economy and the creation of more jobs,” he said.

Apart from lowering individual the income tax rates, HB 4099 will also exempt individuals earning gross income below P180,000 annually or whose net taxable income is below P30,000 from paying an income tax.

At present, only minimum wage earners are exempt from the income tax.

Earlier this year, Senator Sonny Angara has filed a Senate bill seeking to adjust individual income tax brackets and lower the rates on individual income tax starting January 2015.

By 2017, Angara’s bill seeks to lower tax rates to 10 percent from 15 percent for those earning between P20,000 to P70,000 and to 25 percent from the current 32 percent for those earning over P1 million.

Malacañang, however, said any proposal to review the current income tax rates will have to wait until next year. – VS, GMA News

Source: Latest House bill seeks to halve income tax to 15% from 32% | Economy | GMA News Online

[M.A.D.]

Less tax good. More incentives for business startups, particularly in biotech since we have a large agricultural and potential technology base. We can invite the israelis to teach us a thing or two about startups.

Expand our industrial base but the most important of all is reduce the cost of energy.

Other equally important are modern infrastructure for transportation and communication.

[<SMILE>]

Good law, the savings will either go to the banks or to the business sector.
making this money more useful to the economic infrastructure of the country.

[brownie]

it's not yet a law though.

[cliff_drew]

This is definitely a good bill especially for the working class (middle income earners). Additional to the bill aiming to provide high take home pay every December. Hopefully both should become priority bills.

[brownie]

mao ra ni nindot nga gibuhat nila. pinaka grabe gyud tong AKO BICOL party-list ui, anti-pasaway bill ug fall in line/queue. maka balikas man to ani nila ui.

[maxwell80]

Dapat apil nila ug propose nga ireduce ang % sa VAT, kay basin ireduce nila ang % sa income tax nya mag increase pod sa % sa VAT.

[brownie]

Dapat apil nila ug propose nga ireduce ang % sa VAT, kay basin ireduce nila ang % sa income tax nya mag increase pod sa % sa VAT.

hayahay ang mga food business ani kay non-VAT.

[maxwell80]

hayahay ang mga food business ani kay non-VAT.

pero imposible kaayo maaprove ni nga bill di jud mosugot si kim henares ani... nagtingsi lang dagway bayhana...

[krishnu shivaq silquin]

Mura lisod ni.. Maglisod man gani sa vat kana pa nga half jud.. Naa cguro Plano modagan ug higher office...or pwede sad Tino.oray jud na iya... Pero tungason jud.. Ingnon lang Dayon ka sa gobyerno na makuha.an ang budget for infra, education or ba kaha health kung mapatuman... Hostage lang jud ta ani cge....