The economist of the House of Representatives on Wednesday expressed elation over the approval by Committee on Rules headed by Majority Leader and Leyte Rep. Martin Romualdez of House Bill 7881, or the Ease of Paying Taxes Act.
The measure will allow Filipinos abroad to secure Tax Information Numbers from the Bureau of Internal Revenue and invest in the Philippines; establish an office of the taxpayer advocate, and codify a Bill of Rights for Taxpayers to encourage tax compliance and protect taxpayer welfare.
Albay Rep. Joey Sarte Salceda, principal author of the bill, said the measure was already approved by the Committee on Ways and Means, that he chairs.
“I thank the Rules Committee for prioritizing this urgent reform. It approval means we move on to the plenary next, where I am certain it will pass. We have both majority and minority support,” Salceda said.
The bill includes provisions that will allow most processes in tax payment to be accessible remotely. This will allow even Filipinos abroad to file taxes, apply for taxpayer identification numbers which are requirements for investing, and engage in and settle property transactions.
“The taxpayer who volunteers to pay taxes should face little if any difficulty doing so. Those who want to pay taxes should feel very welcome to do so,” Salceda said.
The House committee report will also include the following features:
* Taxpayer classification/segmentation to ease the experience of small and medium taxpayers and focus on education and taxpayer services for their segments, while focusing collection efforts on large enterprises;
* Relaxed rules on returns filing and the payment of taxes (i.e., “venue-filing” and “pay-as-you-file”) so that taxpayers can comply with tax requirements anywhere in the country;
* Uniform documentation for substantiating VAT transactions to facilitate electronic invoicing and close VAT loopholes; and
* Easing compliance requirements so that tax filings for small enterprises need not be as burdensome as large enterprises.
“This is part of a bigger picture: the simplification and modernization of government processes. This is one of four pillars. The other three are ease of registering and operating a business, ease of public service delivery, and ease of government procurement,” said Salceda.
Under Salceda’s bill, taxpayers, including OFWs, will be able to apply for tax identification numbers, file and pay taxes, without the need for physical appearance. Forms are also expected to be significantly reduced for small and medium taxpayers.