New Tax Thresholds Called for in Philippines
September 19, 2016 Taxation in Philippines
MANILLA – Calls are being raised in the Philippines for a drastic overhaul of the tax system to significantly reduce the tax burdens on low-income earners.
Over the weekend Miro Quimbo a Deputy Speaker of the Philippine House of Representatives said that he would push for tax exemptions for low-income earners.
Under current regulations only individuals earning the minimum-income are not required to pay any income taxes.
Miro Quimbo hopes to amend the current tax regulations to allow tax exemptions for the first PHP 300 000 of personal income.
It is estimated that there are currently 9.5 million taxpayers in the Philippines who earn less than PHP 300 000, and who would directly benefit from the proposed tax exemptions.
The Deputy Speaker explained that even though PHP 300 000 is not a small salary, it is barely enough to meet the ongoing expenses of a normal family.
In addition to the tax exemptions, Miro Quimbo also called for a radical hike to the threshold of the top tax rate, from the current level of PHP 500 000 to PHP 10 million.
Photo By: ken wilson lee