Tax Reform in the Philippines
-
Upload
hannah-oros -
Category
Documents
-
view
219 -
download
0
Transcript of Tax Reform in the Philippines
-
7/25/2019 Tax Reform in the Philippines
1/14
Tax Reform UnDuterte Administra
-
7/25/2019 Tax Reform in the Philippines
2/14
TAX REFORM
ADMINISTR
-
7/25/2019 Tax Reform in the Philippines
3/14
DUTERTE: Improve tax systemindexin tax !o""e!tion to in#rate
$Noy: %o&er in!ometax rates&i"" not 'e"p Fi"ipino
-
7/25/2019 Tax Reform in the Philippines
4/14
A major concern when discussing tax reform is easily aect ination.
Ination is everywhere and can never e non!ex"eo#le ex#erience it every single day as the #rigoods and services uctuates over time. As incthe cost of living generally goes u# too$ #artly ination. %ut unfortunately$ the current tax syst
"hili##ines is not devised to ta&e account of in
Hidden Ta
Hi(e
-
7/25/2019 Tax Reform in the Philippines
5/14
)ra!(et *reep +A"so (no&n as HiddTax Hi(e, is the eect of ination is the movement into a higher tax rac&et
taxale income increases.
Tax Indexin is a method used for adjusting tax rates for
ination and is designed to solve the hiddenhi&e
-
7/25/2019 Tax Reform in the Philippines
6/14
'( ma&es "h#)*+$+++ a year and is in the ),- tax rac&et. The tax rate is +- for income that"h#),+$++/ to "h#,++$+++. '( is in the ),- tax
ut over the course of a few years$ his salary adto "h#++$+++ due to a series of cost!of!livingallowances. %ecause of ination$ '(0s "h#++$++uys the same amount of goods and services th"h#)*+$+++ salary did$ ut now he0s in the +-
rac&et.
'( has ex#erienced 2rac&et cree#$2 which ha##when ination drives income u# and into higherrac&ets. As a result$ '( may have gotten a "h#
raise from his original "h#)+$+++ jo$ ut after f
-
7/25/2019 Tax Reform in the Philippines
7/14
$Noy re-e!ts "o&er in!rates proposa"
3ower government revenuwould lead to tax de4cit
Decrease in income taxes in 6AT
So why lessen on the rates that should hbeen there where there is a limit but onlbe increased where it would afect our dexpenses where it would impact especi
the lower classes?
-
7/25/2019 Tax Reform in the Philippines
8/14
calling or reorms or the cooutdated and inequitable taxsystem, one that has been u
since the arcos regime! Senate bill "#$% &'( )ommissioner *im +ena
to lower income tax rates -epartment o .inance stro
against
Anara ."es in!ome t
re/orm bi""
-
7/25/2019 Tax Reform in the Philippines
9/14
see&s to adjust and com#ress the tax
rac&ets see&s to reduce the maximum tax ra
the current )- to ),- y )+/7
Senate bi"" 0123
-
7/25/2019 Tax Reform in the Philippines
10/14
89x#anded 6alue Added TaxAct of )++,:
;ovemer /$ )++,< increase incor#orate income tax from thecurrent rate of )- to ,-.
9ective on 'anuary /$)++=
-
7/25/2019 Tax Reform in the Philippines
11/14
6AT< increase from/*- Reduction of 9xe
;o need to increas 9>cient way< reducorru#tion
-
7/25/2019 Tax Reform in the Philippines
12/14
The ?in Tax 3aw hel#s 4nance the Univ@ealth (are #rogram of the governmen
sim#li4ed the current excise tax systemalcohol and toacco #roducts and 4xedstanding structural wea&nesses$ andaddresses #ulic health issues relating
alcohol and toacco consum#tion.8'y are &e s4pportin it9/. To #romote health y discouraging v). To collect more revenue for healthca
-
7/25/2019 Tax Reform in the Philippines
13/14
Under the law$ , #ercentof incremental revenues
must go to universalhealthcare #rogram
According to the De#artmentof @ealth BDC@$ the"hili##ines has an estimated/7. million toaccoconsumers$ the most numerof smo&ers in ?outheast Asia
-
7/25/2019 Tax Reform in the Philippines
14/14
*ON*%USION