The House of Representatives approved a bill on Tuesday that promotes financial literacy and inclusion,…
House 2nd reading of tax easement bill encounters obstacles.
On Monday, the House of Representatives passed a bill on second reading that aims to ease the documentation requirements, let taxpayers file their reports at any revenue district office, and do away with the yearly registration cost for taxpayers.
To modernize tax administration and enhance tax compliance, the chamber approved House Bill 4125, also known as the proposed Ease of Paying Taxes Act, by voice vote during the plenary session.
For better customer service and tax administration, the proposal establishes a categorization for medium taxpayers and a corresponding special unit under the Bureau of Internal Revenue (BIR).
The bill’s author, Rep. Joey Salceda of Albay, said that if it becomes law, the improved tax administration will result in PHP73.1 billion in more income over five years.
“The law seeks to reduce the burdensome tax compliance that hurts our small and medium-sized businesses and repels investors. It also addresses tax filing and payment requirements. Salceda stated, “We hope this would help close the tax gap, which is predicted to be PHP909 billion in 2018.”
The proposal aims to segment taxpayers, streamline small taxpayer forms and processes, enable portable tax filing and payment, and harmonize the supporting documentation for value-added transaction (VAT) credits.
Salceda stated that the proposed bill is also anticipated to lessen the potential for corruption through modernizing tax administration systems and enhancing the taxpayer experience.
In the end, he stated, “we seek to enhance taxpayer morale by establishing legitimacy and trust between the government and taxpayers since it holds the potential to increase revenues which translates to more infrastructure and better social and health services for our fellow Filipinos.”
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