MANILA — Bayan Muna Rep. Neri J. Colmenares said on Tuesday that Filipino taxpayers could have been “overtaxed” by up to P1.8 trillion.
During a technical working group meeting of the House committee on ways and means, Colmenares said that the current taxation system remains unadjusted since 1997.
He claims that P1.2 trillion to P1.8 trillion had been possibly collected in excess taxes from the income earners.
In a Philippine Daily Inquirer report, Colmenares explained that the figure was derived from the initial computation of the income brackets imposed with taxes which remained unadjusted to inflation since 1997.
The lawmaker is now calling on the government to return the excess taxes.
“It’s time for the government to return (the money) to the people. A lot of these taxpayers’ money didn’t go back to taxpayers at all,” Colmenares said.
The solon has earlier filed a Bill, HB No. 5401, aiming to restructure income brackets and their respective tax rates.
He is proposing the imposition of income tax on earnings beyond an annual “living wage” of more than P300,000.
He is also suggesting a “living wage” at P1,086 per day to assure “decent living.”
The current tax rate is at 5-percent imposed on yearly taxable income of as low as P10,000. The rate goes up to 32 percent for those earning P500,000 and above.
As of writing, there are at least 14 pending measures proposing amendments to the National Internal Revenue Code of 1997. All of which aims to lower the income tax rates.