march26.2014 chouse committee on ways & means drafting bill on lower income tax rates
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8/12/2019 march26.2014 cHouse Committee on Ways & Means drafting bill on lower income tax rates
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House Committee on Ways & Means drafting bill
on lower income tax rates
The House Committee on Ways and Means is currently drafting a bill on the reduction of income
taxes for both individuals and corporations.
Rep. Romero “Miro” uimbo !"nd #istrict$ Mari%ina City&$ committee chairman$ said the
committee has been 'or%ing 'ith the (ational Tax Research Center !(TRC& in crafting the bill$ and its
filing 'ill be done in coordination 'ith )en. *uan +dgardo ,ngara$ chairman of the )enate Committee on
Ways and Means.
“We-ve been 'or%ing on this the last three 'ee%s 'ith the (TRC. This bill 'ill be the mother billto be ta%en up. t is being filed in coordination 'ith the chair of the )enate-s committee on 'ays and
means$ )en. )onny ,ngara$” said uimbo.
He said the Technical Wor%ing /roup !TW/& of the House committee on 'ays and means is still
finali0ing the appropriate rates for the income tax reduction.
uimbo said the ob1ective in 'or%ing for the reduction of income tax rates is in line 'ith the
inclusive gro'th agenda of 2resident ,3uino.
“The ob1ective is to carry out the 2resident4s vision to have a gro'th that4s inclusive$” said
uimbo.
n his fourth )tate of the (ation ,ddress !)5(,& last year$ 2resident ,3uino highlighted the
government-s commitment to attain inclusive gro'th for the 6ilipinos by creating more economic
opportunities for them. “5ur strategy is to maximi0e opportunities for all$ especially for those most in
need. What 'e call inclusive gro'th is the principle that drives every initiative$ every action and every
decision of your government$” the 2resident said.
T'o bills have so far been filed at the House see%ing to cut income tax rates. 7ast March 89$ Rep.
Magtanggol /unigundo !"nd #istrict$ :alen0uela City& filed House ;ill <9== see%ing to lo'er individual
and corporate income tax rates to 8> percent from the current ?" percent and ?9 percent$ respectively.
Mean'hile$ Rep. )alvacion 2once +nrile !8st #istrict$ Cagayan& last year filed House ;ill "89
see%ing to reduce income tax rates of individuals 'ith taxable income amounting to 289$999 to over 28"
million.
2once +nrile said her bill intends to 1umpstart the economy by empo'ering the consumer 'ith
more purchasing po'er 'hich can be done by increasing their ta%e home pay through lo'er tax rates and
hence$ lo'er deductions from their income.
Mean'hile at the )enate$ ,ngara filed last 6ebruary "@ )enate ;ill (o. "8<= see%ing to ad1ust
individual income tax brac%ets and lo'er the rates on individual income tax starting *anuary "98>. t
see%s to lo'er tax rates to 89 percent from 8> percent for those earning bet'een 2"9$999 to 2@9$999 and
to "> percent from the current ?" percent for those earning over 28 million.
NR # 3417C
MARCH 26, 2014
8/12/2019 march26.2014 cHouse Committee on Ways & Means drafting bill on lower income tax rates
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/unigundo$ a #eputy Ma1ority 7eader$ said his proposal$ if enacted into la'$ 'ould definitely
reduce the number of 6ilipinos 'ho do not pay taxes. “7o'er taxes mean higher level of compliance. The
advantages of having 8> percent income tax rates are enormous$” he said.
6or one$ /unigundo said lo'er income rates 'ill stimulate the economy by providing individual
taxpayers more after tax income or disposable income 'hich they can either save or spend in the
engagement of services or purchase of goods that they are sub1ect to :alueA,dded Tax !:,T&.
)econdly$ he said that 'ith the expected increase in sales$ an intended conse3uence 'ould be the
creation of more 1obs by corporations to meet the increase in demand due to the enhanced purchasing
po'er of consumers.
Thirdly$ he said around <9 percent of 2hilippine /ross #omestic 2roduct !/#2& come from the
informal economy$ 'hich do not pay taxes.
7astly$ he said the bill intends to plug revenue loopholes that have been exploited by taxpayers in
consonance 'ith unscrupulous ;R officials.
With the impending integration of "98> ,)+,($ /unigundo said the tax rates of the 2hilippines
must be competitive enough to attract more foreign direct investments that 'ill generate 1obs to 'ipe out
unemployment in the country.
/unigundo-s House ;ill <9== see%s the amendment of )ection "<, !"& of the (ational nternal
Revenue Code !(RC&$ as amended. t provides that for Rates of Tax on Taxable ncome of ndividuals$
the tax shall be computed in accordance 'ith and at the rates established in the follo'ing scheduleB
Net Taxable Income Tax Due
(ot over 2?9$999 +xempt
2?9$999 and above but not over 28?9$999 28$>99 >D of the excess over 2?9$99928?9$999 and above but not over 2"E9$999 2F$>99 89D of the excess over 28?9$999
2"E9$999 and above but not over 2<?9$999 2"8$>99 8>D of the excess over 2"E9$999
2<?9$999 and above but not over 2>E9$999 2<<$999 "9D of the excess over 2<?9$999
2>E9$999 and above but not over 2@?9$999 2@<$999 ">D of the excess over 2>E9$999
5ver 2@?9$999 288>$>99 ?9D of the excess over 2@?9$999
!?9& rbb