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More Lawmakers Oppose BIR’s Decision to Impose Tax Hike on Private Schools

More lawmakers have joined forces to show their opposition towards the 150-percent income tax hike on private schools.

Senator Nancy Binay told the Bureau of Internal Revenue (BIR) to have a heart amid the proposed another tax increase on private schools amid the coronavirus pandemic.

Binay said that the agency incorrectly interpreted the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act. She explained that the bill has been passed to help businesses survive amid the health crisis.


“We passed the CREATE law to help businesses survive the effects of the pandemic through tax incentives. The law plainly states the need to create a more equitable tax incentive system that will allow for inclusive growth and generation of jobs,” Binay said.

The lady senator said that higher tax would force more private schools to close amid the COVID-19 lockdown.

Senate basic education committee chair Sen. Sherwin Gatchalian encouraged his colleagues in the Senate to exercise its oversight powers in investigating BIR’s decision to impose higher tax on private schools.


“I propose further amendments to the National Internal Revenue Code to protect private schools from the potential consequences of this policy, such as school closures, more job losses and hampered access to education during the community quarantine,” Gatchalian added.

Senate President Pro Tempore Ralph Recto, Sen. Juan Edgardo Angara and Sen. Joel Villanueva also opposed BIR’s proposal.

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Read Also; DepEd Makes Revelation on Private Schools’ Enrollment Amid COVID-19 Crisis

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