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BIR: Employers must comply with new tax exemption rules under TRAIN Law

by UNTV News   |   Posted on Friday, January 12th, 2018

MANILA, Philippines – Taxpayers trooped to the public consultation of the Bureau of Internal Revenue (BIR) to answer queries regarding the new tax exemption rules under the Tax Reform for Acceleration and Inclusion or TRAIN Law.

One of the main issues asked is whether a minimum wage earner is still exempted from paying income tax if his annual income exceeds P250,000 due to overtime pay and other incentives.

“There are specific words and other words retained from the old tax code that says a minimum wage earner is exempt from income taxes. So if you’re under minimum wage category, you will be exempted including holiday pay regardless if your total income for the whole year exceeds 250,000” BIR Spokesperson Atty. Marissa Cabreros said.

The BIR stresses that the tax reform law has already taken effect since January 1, so workers earning 21,000 and lower should not have any deductions pertaining to any taxes.

“Our withholding agents have an obligation to ensure that their withholdings are correct. Some employers say there’s no revenue regulation yet. But there’s no need to wait for the revenue regulation because we’ve already released an issuance,” Cabreros said.

The BIR encourages employees to directly report to them any employer who fails to comply with the new tax exemption rule.

“If they exceeded withholding this January in the first salary, they should self-correct to adjust and give back the excess in the next payouts,” Cabreros added. – Mai Bermudez | UNTV News & Rescue

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DA describes price hike in basic goods due to TRAIN a ‘mere speculation’

by UNTV News and Rescue   |   Posted on Thursday, May 31st, 2018

 

QUEZON CITY, Philippines – Agriculture Secretary Emmanuel “Manny” Piñol gathered on Thursday, May 31, various agriculture stakeholders to discuss reports of an increase in prices of basic goods.

Based on their discussions, Piñol said there is actually no reason for a price hike in basic crops and goods even with the implementation of the Tax Reform Acceleration and Inclusion (TRAIN) law.

Citing farm producers, Piñol said it is unreasonable for market vendors to increase their prices when they buy from farmers and producers at a cheaper price.

The Secretary added that there is no shortage of supply of fish, vegetables and basic farm products to justify a price increase. Also, based on the agency’s calculation, the TRAIN only affects the price of basic commodities by less than 1% only.

Piñol believes that some dealers or middlemen are taking advantage of the implementation of TRAIN Law to manipulate market prices.

“The movement of the prices right now in the market is more likely caused by mere speculation than anything else,” Piñol said.

DA will form a technical working group to study and create a list of suggested retail prices (SRP) for agricultural products such as rice, fish, and crops.

Piñol said the SRP will give the government the authority to penalize those who violate its implementation.

“The intention of the President is first, protect our consumers and second is to protect the producers,” he said.

Whoever is found guilty of profiteering shall be penalized with P1,000 to P1-million pesos fine. — Rey Pelayo / Marje Pelayo

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DOF eyes tax hike on tobacco and liquor

by UNTV News   |   Posted on Tuesday, May 15th, 2018

MANILA, Philippines – The Department of Finance (DOF) is pushing for a tax hike on tobacco and liquor products.

According to Finance Secretary Carlos Dominguez, the proposal is to increase government revenue and to protect the health of the public.

Since the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) law, the price of each packet of cigarette increased up to P32.50.

Aside from tobacco and liquor products, DOF also wants increase taxes on mining, coal and casino services. – UNTV News &Rescue

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Zarate files bill seeking to repeal TRAIN law

by UNTV News and Rescue   |   Posted on Thursday, May 10th, 2018

 

 

IMAGE_UNTV_NEWS_061317_Carlos Zarate

Bayan Muna party-list Representative Carlos Zarate

QUEZON CITY, Philippines – Opposition congressman Carlos Zarate of the Makabayan bloc in Congress is determined to repeal the Tax Reform for Acceleration and Inclusion (TRAIN) law.

On Thursday, May 10, Zarate filed House Bill Number 7653 which seeks the return of the country’s taxation system to the original National Internal Revenue Code.

The Makabayan congressman argued that the country’s inflation rate has already soared to 4.5% in just the first quarter of the year since the implementation of TRAIN law. Zarate added that if TRAIN continued, the prices of basic commodities would increase and would further burden the people especially the poor.

He said that instead of increasing the taxes, the government should strengthen its revenue collection arm.

“Dapat maging efficient muna ang collection ng collecting agencies natin – BOC and BIR – sa halip na patawan ng bagong buwis ang ating mga mamamayan,”  Zarate said.

(Collection agencies – BOC and BIR – should first improve their efficiency in collecting instead of imposing additional taxes on people.) — Grace Casin | UNTV News & Rescue

 

 

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