‘Palace stalling on proposal to lower income tax’

Malacañang appears to be just stalling on the proposal to reduce individual income taxes so there will be little time for Congress to approve the muchawaited reform measure.

Leyte Rep. Ferdinand Martin Romualdez, leader of the independent bloc, said Friday that the Department of Finance kept on insisting on the lifting of the Bank Secrecy Law while Malacañang pressed for the passage of the proposed Salary Standardization Law in an apparent attempt to gain brownie points from the public.

He also lamented President Aquino’s stance to study the income tax bill after leaders of Congress, including Senate President Franklin Drilon and Speaker Feliciano Belmonte Jr., pleaded with him last week to give his backing.

“They only have six months left in office. Time is up for studying. That studying line has gone on for too long that it has become an analysis leading to paralysis. The time for lowered income tax is now,” Romualdez told the Pan de sal forum in Quezon City.

He said the proposed Salary Standardization Law was passed on second reading on Wednesday night after a single hearing by the House committee on appropriations on the same day.

“The administration should not use the increased salary for government workers to create a good impression. Reducing personal income tax rate would be better because even if you earn more, you will also have to pay more taxes,” Romualdez said.

Social justice issue

Camarines Sur Rep. Leni Robredo, the administration’s vice presidential candidate for the 2016 elections, expressed support for the measure.

“I’m for it,” Robredo said during a roundtable discussion at the TV5 Media Center in Mandaluyong City with News5, Interaksyon.com, BusinessWorld, Bloomberg Philippines and executives of the MVP group of companies.

“For me it’s a social justice issue but I do understand where the President is coming from. He’ll be the one faced with ( revenue) problems if some will be lost here,” she said.

Robredo, however, said she believes the bill, which remains pending in the Senate and the House of Representatives, is an “equalizer” that favors those with less income.