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Lacson pushes for VAT system reform after fuel tax hike suspension

by UNTV News   |   Posted on Thursday, November 15th, 2018

 

Sen. Panfilo Lacson

MANILA, Philippines — A senator is batting to reform the country’s value-added tax system after the government suspended the collection of the next fuel excise tax scheduled in the first quarter of 2019.

Sen. Panfilo Lacson believes that the proposed reduction in the value-added tax rate from 12 percent to 10 percent will help the government attain its annual revenue targets.

This is amid the projected hefty losses in revenues due to the fuel tax hike suspension.

“Imagine ibinaba mo na ng 10 percent, naka-generate ka pa ng P117-billion incremental revenue,” said Lacson.

“Tayo ang pinakamaraming exemptions sa buong Southeast Asia for that matter, 143”

Lacson is eyeing to slash the number of sectors that are exempted from paying VAT, citing abuses such as in cooperatives, housing sectors and companies in economic zone.

The Department of Finance has expressed support for the said proposal during the passage of the first package of the Tax Reform for Acceleration and Inclusion law.

However, the agency is looking to prioritize the approval of its proposed tax reform packages.

“Pero sa tingin po namin ang mas balanse yung proposed po namin yung series of packages that really benefit the people immediately,” said Usec. Karl Chua.

Senator Lacson hopes that his proposal will gain enough support from his colleagues and hurdle congressional scrutiny. — Nel Maribojoc | UNTV News & Rescue

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Saudi Arabia imposes 5% VAT on basic goods, OFWs advised to spend wisely

by UNTV NEWS   |   Posted on Wednesday, January 3rd, 2018

International Philippine School in Al-Khobar

The imposition of the government of Saudi Arabia of a five percent Value Added Tax (VAT) will affect the Arab nation’s food and beverage industry, petroleum products, rents of commercial establishments, remittance fee, and domestic transportation, among others.

The VAT already resulted in an increase of almost 55 percent in prices of gasoline.

With this, electricity rates will go up to 300 percent.

Overseas Filipino worker (OFW) Raymond Tolosa is already complaining because of a ten percent rise in school tuition this year. He worries it will further increase next year because of additional taxes.

“It’s better to send my children back to the Philippines because it’s more costly to study here,” he said.

However, Philippine Ambassador to Saudi Arabia Adnan Alonto noted that some Philippine schools in the Arab country might be exempted from the additional taxes if it can prove that they are community schools.

“For schools that have requested for certification, come here at the embassy… we can assure you that we will release a statement saying you are exempted, ” Alonto said.

Exempted from the additional taxes are residential rents, medicines, and medical equipment.

It was in 2016 when the unified agreement for VAT of the cooperation council for the Arab states of the gulf was released. The Arab Emirates, Bahrain, Qatar, Kuwait, Oman and Saudi Arabia are among the Arab countries that signed the agreement.

The VAT is a financial measure of Saudi Arabia, which will become one of its non-oil revenue sources.

According to Ambassador Alonto, with this development, Filipinos based in Saudi Arabia should learn how to properly save money.

“Filipinos here know how to endure. We know how to strive for our families,” said Alonto — Bong Duqueza | UNTV News & Rescue

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Senate approves 12% VAT exemption on house rent of P15,000 below

by UNTV News   |   Posted on Tuesday, November 28th, 2017


MANILA, Philippines — The Senate makes its final push towards the passage of the Tax Reform for Acceleration and Inclusion or TRAIN Bill.

It particularly deliberates on which sector will be included or removed from the list of those to benefit from 12% Value-Added Tax (VAT) exemptions.

One provision that the senators agreed upon was to increase the number of VAT exemptions to house and apartment rent of 15,000 pesos and below monthly.

“Sabihin mong P10,000, may balik sa kaniya na P1,200 na hindi bubuwisan ng gobyerno so mamakatulong ito sa mga bedspacers, dun sa mga nagtatrabaho, umuupa, galing probinsya,” said Senate Committee on Ways & Means chairperson Sen. Sonny Angara.

It is expected to help millions of families who are renting once the bill passes into law.

Meanwhile, exemptions of VAT to special economic zones did not win the favor of the senators.

Also, some senators are pushing for 12 percent VAT exemptions to medicines.

“Kung inexempt natin ang medicine sa VAT, hahanap naman ho naman tayo ng pambawi bago tayo matapos,” said Sen. Francis Escudero.

“I supposed our position that we exempt agriculture products from its original products in its state, exempt education, including books, why not exempt sale of drugs and medicine,” said Sen. Ralph Recto.

This week, the Senate targets to complete its deliberations and hopefully pass their version of the TRAIN Bill. — Roderic Mendoza | UNTV News & Rescue

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Panukalang batas na magpapababa sa income tax, minamadali na ng Kongreso

by UNTV News   |   Posted on Thursday, September 4th, 2014

Minamadali na ng kongreso na ipasa ang panukalang batas na magpapababa sa binabayarang income tax sa bansa ng mga middle class earner (UNTV News)

MANILA, Philippines – Mas magiging malaki ang take home-pay ng isang middle class earners kung maipapasa bilang batas ang panukalang Tax Reform for Inclusive Growth (TRIGR).

Sa kasalukuyan, ang minimun wage earners sa National Capital Region (NCR) ay tumatanggap ng sahod na P466/day o nasa mahigit P12,000 kada buwan.

Lampas sa halagang ito ay pinapatawan na ng 32% tax.

Sa nasabing panukalang batas, ia-adjust ang tax bracket. Ang papatawan na lamang ng tax ay ang mga sumusuweldo ng P24,647 na nasa bracket 2.

Ibig sabihin, kung ang isang guro na nagbabayad ng buwis na mahigit P30,000 kada taon ay magiging P9,149 na lamang ito. Aabot sa mahigit 20-libong piso ang maiuuwi nito sa kanyang pamilya.

Nais ring gawing mas simple ang computation ng tax gaya ng pag-aalis sa mga deduction.

Ang lahat ng kumikita ng P173,000 hanggang P445,000 pesos kada taon ang nangangailangan lamang magbayad ng 9% tax.

17% naman sa P445,000 hanggang P10-million, habang 30% naman ang sisingiling tax sa mga kumikita ng lampas P10-million kada taon.

“We cannot give them additional salary, so ang paraan nating pwedeng gawin eh by reducing taxes so that they will have more money sa pangangailangan nila sa araw-araw,” pahayag ni House Committee on Ways and Means Chairman, Rep. Miro Quimbo.

Ayon naman sa Department of Finance, aabot sa P30-billion ang mawawala sa bansa kung ibababa ang singil sa buwis.

Aniya, kailangan muna itong pag-aralan nang husto upang hindi maapektuhan ang financial stability ng bansa.

“We may have to borrow then we have to increase our deficit target,” saad ni Finance Usec. Jeremias Paul Jr.

Tutol naman ang ilang empleyado ng gobyerno sa naging pahayag ng DOF.

Ayon kay Nene Rafael ng Metropolitan Trial Court Manila, babalik din naman sa gobyerno ang kanilang natipid na tax sa pamamagitan ng pagbili ng iba’t ibang taxable product.

“Kasi tayong mga empleyado, we do not keep our money in our pocket pag may bonus tayo we spend it kaya doon din mapupunta, meron tayong VAT anuman bibilhin natin ung tax nundoon din napupunta.”

Sa pag-aaral ng kumite 85% ng nagbabayad ng tax ay ang mga salary earners o ang mga nagtatrabaho sa opisina dahil otomatiko itong ibinabawas sa kanilang mga sweldo.

51% lamang ng mga self- employed professionals gaya ng mga doktor, abugado at inhenyero, habang 30% lamang ng mga self-employed non-professionals o ang mga may maliliit na negosyo.

“Ang taas na nga ng buwis pero kami lang pala ang komokolektahan hindi pala nagbabayad talaga yung mga professionals at self-employed businessmen, hindi nagpapayad practically kaya nagdudugo ang ordinaryong kawani dahil kami na lang pala ang inaasahan,” saad pa ni Quimbo. (Grace Casin / Ruth Navales, UNTV News)

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