Group of Private Schools to Impose 150 Percent Tuition Hike Due to Corporate Income Tax Increase
A group of private schools has warned the public of looming 150 percent tuition hike due to corporate income tax increase.
On Friday (June 11, 2021), the Coordinating Council of Private Educational Associations of the Philippines (Cocopea) said that more private institutions are expected to impose another increase of tuition fees if not it will lead to shutdown of schools.
Cocopea managing director Joseph Noel Estrada made the statement after the issuance of BIR’s Revenue Regulation 5-2021 ordering the 25 percent increase of tax for proprietary educational institutions.
“Sigurado, the cost of education will go up… Kung hindi man magsara (If it will not close down), it will drive the cost higher,” Estrada said.
Last September 2020, the Department of Education reported that around 900 private schools suspend their operations as many Filipino families struggle with their finances amid the coronavirus pandemic.
Cocopea asked the Court of Tax Appeals to cancel the imposition of the BIR regulation. Some lawmakers also asked BIR to review the policy and to implement the original definition of the Tax Code.
Estrada also said that private schools did not receive subsidy from the government as it suffer financial losses amid the health crisis.
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