The provincial government is conducting its own information campaign to generate public support to the Duterte administration’s tax reform bill pending in Congress, known as the Tax Reform for Acceleration and Inclusion or TRAIN Act.
Provincial Treasurer Elino Mondragon said they have been distributing flyers to the general public to disseminate information about the benefits of the new tax measures particularly to government employees and workers in the low income brackets.
The priority measure, already approved by the House of Representatives and currently pending in the Senate, seeks to lower personal income taxes from 32 percent to 25 percent for individuals in the low income brackets. It also expands the value-added tax base and raises excise taxes on refined petroleum products, select types of vehicles and alcohol.
Mondragon said the new tax measure will directly benefit teachers, office workers, call center agents, police officers, soldiers and medical personnel by the significant lowering of their tax obligations.
He said the provincial government is anticipating that the measure will raise the tax collection performance of the national government and generate funds for priority projects.
“Malaking bagay ito kung maisabatas kasi napalaki ng mababawas sa mga tao, halos kalahati, lalo na hindi pa ganoon kalaki ang natatanggap ng iba,” Mondragon said.
He added that the government will make up for potential losses by raising taxes on luxury vehicles and petroleum products.
“Kaya sa kanila inilipat ‘yung mas mataas na tax kasi sila ‘yung may kakayanan na i-afford ‘yung mahal na mga sasakyan syempre kaya rin nila ang magiging tax nito,” he said.
He noted that the Value-Added Tax (VAT) will be adjusted to prevent leakage that allows many business establishments use the exemption to avoid taxes on their products.
The proposed measure, he added, will also remove the exemption for cooperatives except on immature agricultural products, domestic shipping importation, power transmissions, socialized and low-cost housing, to person with disabilities, senior citizens and other exemptions that are belongs to special law.
“Malaking tulong talaga kung maaaprobahan ito kasi mababa na ang tax natin mas maraming mapaglalaanan lalo na ang lugar natin ay benepisyo sa planong mga imprastraktura,” he said.