Cites impact on revenue loss, inequitability of such tax exemptions
(Eagle News) – President Ferdinand Marcos Jr., has vetoed the bill that sought to exempt from taxes the allowances and financial benefits of persons serving during elections, saying that the impact of the revenue loss from this was “too substantial.”
Palace press secretary Trixie Cruz-Angeles said that the President vetoed House Bill No. 9652 and Senate Bill No. 2520, also known as “An Act Exempting from Income Taxation the Honoraria, Allowances, and other Financial Benefits of Persons Rendering Service during an Election Period” citing Marcos Jr’s veto message.
President Marcos Jr., said the measure “runs counter to the objective of the government’s Comprehensive Tax Reform Program to correct the inequity in the country’s tax system and negate the progressivity of the reforms introduced under RA 10963 or the TRAIN law.”
He also referred to studies on the impact of such tax exemptions and the revenue loss it entailed.
“Moreover, the studies of pertinent government agencies on the revenue loss is too substantial an impact to be foregone,” the President said.
-Support should be through budgetary spending, says PBBM-
In his veto message, Marcos Jr., said that while he recognizes the “laudable intent of Congress to provide income tax exemption for persons rendering service during an election period, the same will be inequitable to other persons performing similar activities and/or services.”
“Moreover, providing additional support to any sector is best addressed through targeted budgetary spending rather than through the tax system,” he said.
President Marcos Jr., then encouraged Congress “to enact measures that are consistent with the thrust and commitment of this administration towards national economic recovery.”
The President returned the bill to Congress without his signature, with the message on why he vetoed it.
During his State of the Nation Address (SONA), Marcos said his administration would put in place tax administration reforms “to increase revenue collection.”
(Eagle News Service)