HOUSE Committee on Ways and Means Chairperson and Marikina City Rep. Miro Quimbo said the House of Representatives is targeting approval by August of President Ferdinand R. Marcos Jr.’s proposed tax relief package to ensure its implementation on Jan. 1, 2027.
Quimbo said Speaker Faustino “Bojie” G. Dy III and Majority Leader Ferdinand Alexander “Sandro” A. Marcos are targeting House approval on third reading by August of the proposed tax relief package and its corresponding revenue measures to keep the President’s timetable on track.
“Ang tantiya namin dito, base sa informal discussions with Speaker Bojie at saka Majority Leader Sandro, is ngayong August tatapusin namin itong compensation as well as ‘yung corresponding compensating taxes na ating gagamitin o i-impose o i-adjust para mabawi ‘yung mawawalang pera because of the revenue loss na mangyayari dito,” Quimbo said during a press briefing on Tuesday.
In his fifth State of the Nation Address (SONA), Marcos asked Congress to expand the income tax exemption to cover workers earning up to P350,000 annually; reduce income taxes for other workers; exempt small businesses from the minimum corporate income tax; and grant tax amnesty for unpaid income tax, estate tax, donor’s tax, value-added tax (VAT) and the corresponding penalties.
He said the proposed increase in the income tax exemption threshold cannot take effect before Jan. 1, 2027 because government revenues and expenditures for 2026 have already been programmed under the existing tax structure.
“Effectivity nito is January 1, [2027]. It cannot be earlier because masyadong mahirap para i-unwind. Ang computation ng BIR (Bureau of Internal Revenue) pati ng ating budget, ay dependent doon sa tax collection as computed on annual basis,” Quimbo explained.
Quimbo said the House is also targeting third reading approval before its October break of the proposed tax amnesty covering unpaid income tax, estate tax, VAT and other tax liabilities.
“We would like to pass it in the soonest time possible. Hopefully bago kami mag-break ngayong October ay magawa na natin ito dahil inaantay na ito ang estate tax amnesty, VAT, pati iba’t ibang taxes na hindi nababayaran para sila ‘yung manumbalik sa ekonomiya at magbayad uli so that everybody gets a clean slate.”
metrosundaily
