tax reform in the philippines

7/25/2019 Tax Reform in the Philippines

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Tax Reform UnDuterte Administra


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TAX REFORM

ADMINISTR


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DUTERTE: Improve tax systemindexin tax !o""e!tion to in#rate

$Noy: %o&er in!ometax rates&i"" not 'e"p Fi"ipino


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A major concern when discussing tax reform is easily aect ination.

Ination is everywhere and can never e non!ex"eo#le ex#erience it every single day as the #rigoods and services uctuates over time. As incthe cost of living generally goes u# too$ #artly ination. %ut unfortunately$ the current tax syst

"hili##ines is not devised to ta&e account of in

Hidden Ta

Hi(e


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)ra!(et *reep +A"so (no&n as HiddTax Hi(e, is the eect of ination is the movement into a higher tax rac&et

taxale income increases.

Tax Indexin is a method used for adjusting tax rates for

ination and is designed to solve the hiddenhi&e


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'( ma&es "h#)*+$+++ a year and is in the ),- tax rac&et. The tax rate is +- for income that"h#),+$++/ to "h#,++$+++. '( is in the ),- tax

ut over the course of a few years$ his salary adto "h#++$+++ due to a series of cost!of!livingallowances. %ecause of ination$ '(0s "h#++$++uys the same amount of goods and services th"h#)*+$+++ salary did$ ut now he0s in the +-

rac&et.

'( has ex#erienced 2rac&et cree#$2 which ha##when ination drives income u# and into higherrac&ets. As a result$ '( may have gotten a "h#

raise from his original "h#)+$+++ jo$ ut after f


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$Noy re-e!ts "o&er in!rates proposa"

3ower government revenuwould lead to tax de4cit

Decrease in income taxes in 6AT

So why lessen on the rates that should hbeen there where there is a limit but onlbe increased where it would afect our dexpenses where it would impact especi

the lower classes?


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calling or reorms or the cooutdated and inequitable taxsystem, one that has been u

since the arcos regime! Senate bill "#$% &'( )ommissioner *im +ena

to lower income tax rates -epartment o .inance stro

against

Anara ."es in!ome t

re/orm bi""


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see&s to adjust and com#ress the tax

rac&ets see&s to reduce the maximum tax ra

the current )- to ),- y )+/7

Senate bi"" 0123


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89x#anded 6alue Added TaxAct of )++,:

;ovemer /$ )++,< increase incor#orate income tax from thecurrent rate of )- to ,-.

9ective on 'anuary /$)++=


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6AT< increase from/*- Reduction of 9xe

;o need to increas 9>cient way< reducorru#tion


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The ?in Tax 3aw hel#s 4nance the Univ@ealth (are #rogram of the governmen

sim#li4ed the current excise tax systemalcohol and toacco #roducts and 4xedstanding structural wea&nesses$ andaddresses #ulic health issues relating

alcohol and toacco consum#tion.8'y are &e s4pportin it9/. To #romote health y discouraging v). To collect more revenue for healthca


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Under the law$ , #ercentof incremental revenues

must go to universalhealthcare #rogram

According to the De#artmentof @ealth BDC@$ the"hili##ines has an estimated/7. million toaccoconsumers$ the most numerof smo&ers in ?outheast Asia


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*ON*%USION

tax reform in the philippines

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