Senate eyes general tax amnesty
Senators are now trying to rush the passage of the measure seeking a general tax amnesty to encourage taxpayers to pay correct taxes and eventually raise more revenues to finance crucial government projects.
Senator Juan Edgardo “Sonny” Angara, on Tuesday, endorsed for plenary approval Senate Bill No. 2059, or the proposed amnesty that covers all unpaid internal revenue taxes – estate taxes, general taxes and delinquent accounts – due for taxable year 2017 and prior years.
Angara, chair of the Senate Committee on Ways and Means, expressed hope the measure will finally encourage those in the formal and non-formal sectors to legitimize, properly declare, and pay the correct taxes without fear of civil, criminal, or administrative penalties.
“Sa totoo lang, mahirap isulong bilang tungkulin ng bawat mamamayan ang magbayad ng wastong buwis, kung ang kasalukuyang sistema ng pangongolekta ay kumplikado, mabagal, at nakalilito (In reality, it’s hard to push each citizen topay the correct taxes if the current tax collection system is complicated, slow and confusing),” Angara said.
Once passed into law, Angara said he envisions the granting of the tax amnesty as an opportunity for “a fresh start” and that “all parties involved may be absolved and unburdened by the sins of the past.”
Senate Majority Leader Juan Miguel “Migz” Zubiri, in an interview, said the tax amnesty bill is one of the tax measures that the government is considering as an option if passage of the second tranche of the Tax Reform for Acceleration and Inclusion (TRAIN) 1 Law is impossible this year.
Zubiri said the Department of Finance (DOF) is optimistic on the passage of the bill as the proposal could bring in revenues of up to P36billion, based on the assessment of President Duterte's economic managers when they met with the Chief Executive Monday night.
“(Finance) Secretary (Carlos) Dominguez seems to be resigned to the fact that it would be difficult to pass the TRAIN 2 at least this year. He is asking if we can pass it next year but we told him to first focus on the inflationary problems,” Zubiri said.
“Let’s fix the inflation, let’s stabilize the inflationary pattern when it comes to food, and other services and then maybe we can discuss other tax measures but at this point in time, lahat kami agreeable sa tax amnesty,” he said.
“Kasi wala naman tataamaan na mahihirap, di tataas ang bilihin dito. At the same time mako-collect ng gobyerno ang dapat kolektahin sa mga tax evaders. It’s a chance for them to pay the right amount of taxes without the legal impediment of filing charges against them,” he said.
Under the Senate version, taxpayers can avail themselves of amnesty from all estate taxes, and instead pay 6 percent based on the decedent’s total net estate.