Scrap tax holidays to make up for income tax cut — Monsod 

 

The Philippine Congress could rationalize the tax benefits of corporations and compensate for revenue losses from the proposed lowering of income taxes, according to GMA News' resident economist.

 

"The income taxes should be studied because nagtaas ang presyo. From 1997 hanggang ngayon, more than two times na ang taas ng presyo," said Solita Collas-Monsod, professor emeritus at the University of the Philippines School of Economics.

 

The Senate and House of Representatives last reformed income tax rates in 1997. The Philippines levies one of the highest income tax rates of 30 percent for corporations and 32 percent for workers in Asia.

 

Several lawmakers have been pushing for measures seeking to slash income tax rates. But President Benigno Aquino III and finance officials have balked at such proposals because of concerns over revenue losses.

 

Lowering the income tax rates would cost the government P97 billion in revenue losses, Monsod estimates. 

 

"Mayroon akong suggestion. Lift the income tax holidays, rationalize income tax holidays on corporations here in the Philippines. Ang makukuha niyo diyan more than P150 billion," she said. 

 

The rationalization of income tax benefits given to corporations should go hand-in-hand with the adjustments in income tax rates. – Keith Richard Mariano/VS, GMA News