House Minority Leader and Quezon Rep. Danilo Suarez on Sunday said Congress must look for ways to end corruption in the Bureau of Internal Revenue, instead of passing the proposed Tax Reform for Attracting Better and High Quality Opportunities.
“Corruption at the BIR happens. For example, a taxpayer tries to negotiate with BIR officials to reduce taxes due, extend payment periods or adhere to special arrangements, instead of going through the right process, which, if contested, may involve long and expensive litigation,” he said.
Congress should seriously consider passing his proposed tax amnesty on all
unpaid taxes for January 2006 to June 2016, he said.
“The new tax amnesty bill would provide a clean slate for delinquent taxpayers and encourage all taxpayers, especially low-income and middle-income earners, professionals and even overseas Filipino workers to avail of the program, and register with the BIR.
The measure, if passed, would improve taxpayers’ compliance with national tax policies, increase revenue collection and reduce corruption, Suarez said.
“Instead of speeding up the passage of the second package of the Tax Reform for Acceleration and Inclusion [TRAIN] law, we must prioritize the passage of the tax amnesty bill,” he said.
Deputy Speaker and Batangas Rep. Raneo Abu said the estate tax amnesty as part of the general amnesty bill will help declog and update real property records and titles.
“This will promote the interest of heirs in developing inherited real properties. This will also boost the financial position of the local government units,” he added.
On Saturday, the Federation of Filipino Chinese Chambers of Commerce and Industry Inc. aired it support for Trabaho, saying lower corporate income taxes would improve the competitiveness of domestic corporations and allow them to reinvest tax savings into their businesses.
Lower taxes could also make businesses pass on the tax savings to consumers by way of lower prices to stay competitive, thus contributing to economic growth and the creation of more job opportunities, the group said.
“We agree that rationalization of fiscal incentives reform is long overdue in the Philippines,” said FFCCC II president Domingo H. Yap. “The regime of incentives must be well targeted to assist the more deserving, and be time-bound rather than indefinite. They must be performance-based to ensure they are attuned to the government’s objectives in generating employment and attracting investments.”
“The Trabaho bill is meant to be revenue neutral and will rationalize granting of government incentives. We reaffirm our support for tax reforms in the Trabaho bill to sustain fast and inclusive economic growth for the Philippines.”