Pimentel says Senate to look at reforming income tax rate, updating excise on diesel
Senate President Aquilino Pimentel III said reforming the compensation income tax bracket rates and updating the tax on excise will be some of the aspects the Upper House will look at when the tackle the proposed comprehensive tax reform bill.
“Even the richest man in the Philippines is part of the middle class income earner at the highest bracket. So now it’s time to reform that,’ said Pimentel in an ambush interview on Thursday.
The Senate, said Pimentel, is watching out for excise tax rate portions like the one on diesel. The current excise tax is three pesos per liter.
Pimentel said the rich are taking advantage on the low tax on diesel. “We have to update that but the key here is to calibrate, not shock the entire system with a big jump of cost in the price of diesel,” he said.
“We will have to discuss that. The proposal is six pesos per liter but there are proposals that you can achieve the six pesos by three, two, one. Three (pesos) first and then two plus one, so you get six. There are many strategies in tax law which we could implement,” he added.
The House passed the comprehensive tax reform package on Wednesday just before both Houses of Congress adjourned sine die. Sessions will resume on June 24.
Pimentel said there are some complaints because “there are many current exemptions which we are lifting or erasing. But you know, if you want a modern country, a modern society, a fairer society, we really have to have funds to improve our society.”
Pimentel said the finance department should not expect that what they propose will be one approved by the senators,
“That is the hope. That is what they want because that is what they submitted. If you submit something to Congress, you hope that is one passed. But of course they are also realistic, we have a system, give and take.”
“ It goes through a process and… you accept the will of the representatives of the people,” he said. DMS
