The President of the Republic of the Philippines, Pres. Benigno S. Aquino III thumbed down proposals seeking to lower the income tax of fixed-income earners, saying there is no government surplus for the tax relief of ordinary or fixed-income earners in the Philippines.
According to President Aquino yesterday there is no government surplus for such tax relief but noted that if there is a surplus and the government experienced it for years, then he will talk about it. The statement of the President was released during a chance interview in Iloilo City, where he led the inauguration of the P700-million Iloilo Convention Center.
President Aquino explained that he is not convinced that lowering the income tax at this time would be beneficial as he stated that the proposal would increase the budget deficit, which would be a negative factor from the standpoint of credit rating agencies.
During the past few days, administration lawmakers both from the Senate and the House of Representative have been pushing for the lowering of personal income taxes, saying that tax bracket systems have been stuck at 1997 levels.
The proposed income tax cuts was also described by Pres. Aquino as regressive taxation, which is contrary to the mandate of the Constitution for progressive taxation.
Watch the Video Report on Pres. Aquino’s Disapproval Report: