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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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VP Robredo supports bid to suspend, revisit TRAIN Law

by UNTV News   |   Posted on Wednesday, July 11th, 2018

Vice President Leni Robredo

MANILA, Philippines — Vice President Leni Robredo supports the bid of some lawmakers to suspend the imposition of the Tax Reform for Acceleration and Inclusion (TRAIN) law.

In a media interview, she reiterated that the law should be reviewed following its negative effects, especially to the poor Filipinos.

Robredo claims the authorities did not anticipate the increase in market prices upon drafting its provisions as she hits the failure in distributing the subsidy for 10 million poor families which are supposed to serve as the safety net of the TRAIN law.

“Until now July na 2.2M palang ang nabibigyan pero ang effects ng TRAIN ramdam na mula ng pumasok ang 2018,” Robredo said.

The vice president also questioned the need to amend the current Philippine Constitution and to shift into the federal government.

She insisted that there are more pressing issues that the government should focus on.

“Bakit ang pinagtutuunan natin ng pansin ay iyong Charter Change na hindi naman siya ang sagot sa pagtaas ng presyo. Hindi naman siya ang sagot sa kahirapan,” said the vice president.

Robredo, meanwhile, confirmed that she will attend President Duterte’s third State of the Nation Address (SONA) to know about his plans for his remaining years in office. — Rey Pelayo | 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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