Palace on lower tax rates: Maybe next year

A Malacañang spokesperon said Monday the government is open to reviewing the income tax rates in the Philippines but that it will have to wait until next year.

 

"Let’s study [that] next year, not only just the income tax rates but let’s study the comprehensively the Tax Reform Act of 1997," presidential spokesperson Edwin Lacierda said during a press briefing.

 

Lacierda's remark came following Senator Sonny Angara's Senate Bill No. 2149 which seeks to adjust individual income tax brackets and lower the rates on individual income tax starting January 2015.

 

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.

 

Lacierda, however, said they should "focus first on all these bills that we have in the legislature right now."

 

"We will look into it. Let’s just focus first on ... tax reform bills that currently are in the pipeline of the legislature and then let’s study and see if there’s a need to restructure based on the bill of Senator Angara," he said.

 

Earlier, the Bureau of Internal Revenue had also earlier said there is a need to study the proposal thoroughly. — Kimberly Jane Tan/RSJ, GMA News