Photo: Facebook Page of Senator Paolo Benigno “Bam” Aquino IV
MANILA, Philippines – Revise tax bracket set in 1997.
This is the goal of Senator Paolo Benigno “Bam” Aquino IV in filing Senate Bill 1942.
“The salary of a management-level employee 17 years ago will probably be equivalent to the salary of an entry-level call center agent today because of inflation and other economic factors,” Aquino said.
“Now is the time to get this updated and be attuned to the present time. We cannot continue using outdated tax brackets and a threshold which were approved seventeen years ago,” he added.
Through the measure, Section 24 of the National Internal Revenue Code of 1997 would be amended by adjusting the levels of net taxable income and simplifying the nominal tax rates in computing individual income tax based on current prices.
It also aims to collect higher taxes from the upper one percent of taxpayers.
“The Tax Reform Act effectively lowers the taxes on the Filipino working class, allowing them to enjoy a higher net income and increasing their purchasing power,” Aquino said.
A just tax system, according to the senator would support the government’s drive to encourage citizens to declare their true income pay and pay the right taxes.
“It also supports the government’s push for inclusive growth while ensuring that government is still able to raise funds for social programs that directly benefit the poor. It is a win-win solution that offers the greatest benefit to the greatest number of Filipinos,” he said.
He also assured that it would not have an adverse effect on small or medium-sized enterprises.