“A sound tax policy system should be based on the taxpayer’s ability to pay,” Senator JV Ejercito today said in filing Senate Bill No. 2970, which supports the lowering of personal income tax rates.
Ejercito stressed the needed tax reform because of the incomparable prices of basic commodities when the law was previously enacted.
“The bill is an assertion of a justified and equitable tax system designed to benefit the marginal income earners by adjusting the rates of tax on personal income. The Consumer Price Index (CPI) tells us that Php100 in 2006 cost only Php62 in 1997 when the National Internal Revenue Code was enacted. In 2014, this amount surged in value at Php140,” Ejercito said.
Aside from the adjustment of tax rates, the lawmaker also proposed an adjustment to the personal exemption, from Php 50,000 to Php 70,000. He said that this amendment is seen to be suitable to the personal and family expenses and to cope with the inflation of basic commodities.
“These proposed amendments will help a simple Filipino laborer to sustain a decent living for himself and his family. This can be a real measure of inclusive growth,” Ejercito said. ###