Senator Sonny Angara expressed hopes that the administration of Rodrigo Duterte will do something about cutting the income tax rate.
Angara, the principal author of the bill that seeks to adjust the tax bracket, believes that the Aquino Administration did not prioritize the passing of the bill into measure.
“It’s too bad the Aquino administration did not make it priority because there was the fiscal space to make it happen. And because of their good fiscal management, so the government had money,” said Angara, in an interview with ANC Headstart on Monday.
Angara then expressed happiness when the incoming Finance Secretary Sonny Dominguez said that the measure will be implemented.
“What I’m happy about is incoming Finance Secretary Dominguez has said, has agreed basically with what we’ve been saying for a long time—that if you earn P500,000 [and] you’re in the top tax bracket, that’s too much,” said Angara.
Angara said the philosophy of the bill is to adjust the tax brackets that have been placed since 1997 that as of the current, remained untouched despite of different financial factors including the purchasing power of peso.
Duterte’s administration announced the eight-point agenda, which is also aimed in adjusting the tax system. Dominguez said the tax system will become “progressive,” which will be lower to some. The plan is to lower the income tax rates to 25% from 32%.