Sen. Marcos urges Palace to certify as urgent tax reform proposal pegging rate to inflation

Senator Ferdinand "Bongbong" R. Marcos, Jr. today urged Malacañang to certify as urgent the tax reform proposal in Congress seeking to alleviate the burden of Filipino taxpayers and make it more equitable by pegging taxable income rates to inflation.

"If Malacañang is really sincere in its promise of development for everyone it should certify the bill as urgent," Marcos said.

Marcos noted that time is running out for Congress to approve the proposal as Senate is set to tackle the proposed 2016 budget in the few remaining session days of the year, leaving the legislature with just a short period of session next year to tackle other important bills.

The senator earlier backed calls to revise the existing tax bracket but Malacañang has repeatedly rejected it. Under the National Internal Revenue Code of 1997, individuals with taxable income of over P500,000 are taxed with a fixed amount of P125,000 plus the 32 percent of the excess over P500,000.

"Our tax structure is simply out-dated that even those in the middle class are now in the bracket of the rich, paying tax for the rich. It's time we do something to correct the situation," Marcos said.

He cited a study of IBON research group, which estimates that around five million to six million Filipinos and their families are being doubly burdened by higher taxes and inflation.

Based on the data of the Bangko Sentral ng Pilipinas prices of goods and services have more than doubled or increased by 110 percent between 1997 and 2012 but the individual income tax brackets have remained unchanged since 1997.

On the other hand, the senator cited reports saying the latest Family Income and Expenditure Survey (FIES) showed that income of the lowest-earning 70 percent of Filipinos had grown 137 percent between 1992 and 2012 and as a result many of low and middle income families now have to pay higher taxes.