Angara to PNoy: “Your ‘bosses’ want to hear tax reforms in SONA”

Senator Sonny Angara (senate.gov.ph)

MANILA — Senator Juan Edgardo “Sonny” Angara asks President Benigno S. Aquino III to push for tax reform in the latter’s sixth and last State of the Nation Address (SONA) this coming July 27.

Angara told reporters that the Filipino people, whom President Aquino called as his ‘bosses’, would want to hear that the Chief Executive pushes for a progressive and equitable tax system in the remaining months of his presidency.

“We’re asking the President to put tax reform in his SONA,” he said.

Angara has been pushing for lower tax rates both for corporate and individual income taxes as tax rates in the Philippines are the highest in ASEAN and neighboring Asian countries.

Maximum individual rate in the country is at 32 percent for a cap of Php500,000 annual earnings or some USD 11,000.

The senator noted that the country’s case is high income tax rate with low bracketing.

Compared to other ASEAN countries, Singapore’s top tax bracket is at USD 250,000 with a tax rate of 20 percent; Indonesia’s is at USD 43,000 at tax rate of 30 percent; Malaysia with USD 30,000 taxed at 26 percent; and Thailand with USD 123,000 at 35 percent.

“Make a strong statement on income taxes,” Angara said.

“On tax bracketing at the very least,” he stressed. “If we cannot lower rates, lets’ re-bracket and make the tax system more progressive,” he said.

On the other hand, the local corporate income tax of 30 percent is offsetting the competitive advantages of the Philippines to be an investment hub for companies.

Angara added that other bills pending in the Senate and the House of Representatives which are related to tax reforms will possibly move faster if President Aquino gives it a push in his SONA.

This would include the Tax Incentives Management and Transparency Act (TIMTA) and the Rationalization of Fiscal Incentives (RFI).

He said both upper and lower houses are not giving up to pass bills regarding taxes until the last day of President Aquino’s term on June 30, 2016.