PNoy, Congress on collision course over tax measure
President Aquino is not inclined to change his stand on the proposed reduction of the country’s income tax rate despite persistent appeals from the labor sector and working class.
Senate President ProTempore Ralph Recto, meantime, said that he believes that nothing can stop Congress from passing the lower income tax bill.
The income tax structure will remain unchanged since the President intends to keep the country’s stable fiscal position, according to Presidential Communications Operations Secretary Herminio Coloma Jr.
“The President prefers to stay the course for the remainder of his term in order to preserve and consolidate the gains achieved through sound management of macroeconomic fundamentals,” Coloma told the Manila Bulletin when asked if the President’s position on the matter was final.
The Tax Management Association of the Philippines (TMAP) earlier appealed to the President to reconsider his position against the proposed lower income tax rate.
The group of tax managers said lower income taxes would raise the disposable income of Filipino families who will then spend more on goods and services. Such extra spending would help spur economic growth, the group added.
The foreign business community has also expressed support to bills seeking to reduce personal and corporate income taxes to increase the flow of trade and investments in the country.
Adamant Congress Recto said lawmakers can still pass the measure adjusting the income tax rates to pressure President Aquino to sign it into law.
“As much as possible, it would be good if we can iron out the kinks. But nothing prevents the Senate and the House of Representatives from passing it and sending the bill to the President’s desk,” Recto said.
“Maybe when he sees it on his desk and studies it, and sees all the facts, there is a possibility he will sign it, that he won’t veto the bill if we were to push the envelope, so to speak,” the senator added.
Labor sector action
A militant labor group called on workers yesterday to join protests to demand for the passage of the tax measure in Congress.
Bukluran ng Manggagawang Pilipino chairperson Leody De Guzman said this will pressure President Aquino to reverse his earlier decision to reject proposals in the Senate and the House of Representatives, which would raise the income tax exemption to 88,000.
“The working class who are the most taxcompliant sector of Philippine society – have every right and reason to call for less taxes, or even for a tax revolt,” De Guzman said. (With a report from Samuel P. Medenilla)