Reducing income tax rates needs to be studied – BIR chief Henares

Before lowering the rate on income tax as proposed by Senator Sonny Angara, a number of studies will have to be made, the Bureau of Internal Revenue said Monday.

 

"Wala namang problema [sa pag-pababa ng income tax rate] pero maraming pag-aaral ang dapat gawin dyan," BIR Commissioner Kim Jacinto-Henares said in an interview over GMA News' "Unang Balita." 

 

"Pag-aaralan 'yung profiting, kung mula saan hanggang saan. Pangalawa, kung gagawin natin 'yan meron tayong... mga deduction na hindi na puwede," she said.

 

 

ASEAN integration

On February 27, Senator Angara filed Senate Bill No. 2149 seeking to adjust individual income tax brackets and lower the rates on individual income tax starting January 2015.

http://www.senate.gov.ph/lisdata/1881715943!.pdf

 

Angara said the measure is in preparation for the Association of Southeast Asian Nations (ASEAN) integration, noting the Philippines has the highest income tax rate of 32 percent – next to Thailand and Vietnam.

 

By 2017, the 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.

 

"Parati ko namang hong sinasabi na kung lahat naman po ay nagbabayad ng tamang buwis, pwede nating pag-aralan kung paano ira-rationalize 'yung rate," Henares said. – Danessa Rivera/VS, GMA News