Certify lower income tax bill urgent, Chiz urges PNoy
Senator Francis “Chiz” Escudero yesterday called on President Aquino to certify as urgent a bill lowering individual income tax, saying a presidential certification will make the bill a priority measure and “veto-proof.”
Escudero said the Philippines’ 32percent tax bite on a monthly income of $1,100 ( 51,491) at 46.81 exchange is one of the highest in the region.
“And whatever left in the pay envelope when spent is subject to a 12-percent VAT,” he said.
Escudero said he is in favor of lower rates, fewer brackets, simpler rules, and faster process in personal income tax.
“The reality is that the input of the President is critical when it comes to tax measures,” Escudero said in a statement.
“The lawmaking process stops at his desk. If he doesn’t like a bill, he won’t sign it. So if this is the reality, then it’s better to engage him,” he said. Escudero, who used to chair the Senate Finance Committee, added that historically, measures which presidents send to Congress are not always written in stone.
“Congress can fine-tune, improve and make it better. But at the very least, legislators would know the sense of the Office of the President. It can serve as an input, and a major one at that,” Escudero said.
Similar to the proposed Bangsamoro Basic Law, the senator said Congress cannot afford to be a rubber stamp when legislating measures such as these proposals to reduce income tax rates. But Congress, he said, can look to Malacañang as basis or for guide in crafting the bill.
“More than the specifics of the bill, what is important is the President’s message to Congress that ‘I want this measure passed,’” he said.
“President Aquino should not let the opportunity pass to bring down one of region’s highest individual income tax rates,” added the senator.
“Years from now, when the President goes back to Times Street, he should not look back with regret that he squandered the opportunity to lower the income taxes to their compassionate levels,” Escudero said.