Malacañang open to the proposal to lower individual income tax rates
Delon Porcalla of The Philippine Star reports that Malacañang has expressed willingness to lower the rates of income taxes for both for workers and corporate entities, just days after Internal Revenue Commissioner Kim Henares suggested the commissioning of further studies to determine the effects such a proposal will have on the government's coffers.
According to the report, Press Secretary Herminio Coloma Jr. said the Palace does not see any problem with holding consultations on the issue with several stakeholders, especially since "fixed income earners comprise the bulk-or around 85 percent-of the government's tax base."
Sen. Sonny Angara has earlier proposed the reduction of personal income tax came from the current 32 percent should be cut to 25 percent, in preparation for the ASEAN integration in 2015. The Philippines is currently one of the top countries among the 10 ASEAN members which imposes the highest individual income tax, apart from Thailand and Vietnam.
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