By Meanne Corvera
Eagle News Service
The Senate on Tuesday approved on third reading the proposed Tax Reform for Acceleration and Inclusion that will exempt around 6.8 million workers in the country from paying income taxes.
Seventeen senators voted in favor of Senate Bill No. 1592 sponsored by ways and means committee chairman Sonny Angara.
In the approved version, workers who earn up to P250,000 each year will no longer pay income tax.
Apart from this, their 13th month pay and other bonuses amounting to P82,000 will no longer be taxed.
“Sa kasaysayan ng pagbubuwis sa bansa, ito na ang pinakamalaking income tax relief na maipagkakaloob natin sa mga manggagawa. We’re putting more money in the pockets of Filipinos. Gusto nating gawing patas ang ating income tax system na naging hindi makatarungan sa pagdaan ng panahon,” Angara said.
Under the Senate’s version, medicines prescribed to patients especially senior citizens will no longer be taxed.
In exchange, taxes on oil, sugar sweetened beverages, and coal will be increased, which means electricity rates may also go up.
Taxes on mining will be doubled.
Based on the Department of Finance’s computation, the government will be able to collect up to P130 billion in added revenues under the Senate’s version of TRAIN.
“Basta may usapan na within the body na 60 percent ng revenues will go to infrastructure, 27 percent will go to transfers and social amelioration and health measures, anti-hunger, malnutrition, tapos yung 13 percent, na motion nina Sen. Gordon for national defense,” Angara said.