A PETITION that seeks to lower the income tax for Filipinos was launched recently on the online platform change.org.
Initiated by LowerTaxPH, it is titled “Lower Income Tax Rates In the Philippines, Now Na!” and is addressed to President Benigno S. Aquino III, Senate President Franklin Drilon, and House Speaker Feliciano Belmonte Jr. It has been signed by more than 4,700 petitioners as of September 2, 2014.
“The existing income tax rates in the Philippines is INJUSTICE (emphasis by petitioner) to the honest taxpayer. Pinoys are paying the highest income tax rates across ASEAN yet we see our taxes being stolen by Napoles-like shenanigans and in cahoots with evil, thick-faced, no-good government officials.”
It added that the while Filipinos are paying the highest income tax in Southeast Asia, “the taxpayer does not get high returns in terms government services which are mostly targeted for social beneficiaries.”
The petition also added that the existing income tax rates in the Philippines is “unfair” because the middle-class pay the same rate as billionaires. The rates are also “outdated by almost two decades” since it was last updated in 1997 without provision for peso devaluation “making the rate irrelevant to inflation and today’s value of money.”
“No wonder our countrymen risk their lives and family life by working abroad just to make ends meet, because staying means not only getting underpaid but deducted one-third of salary due to soaring high income tax,” the petition added.
Filipino worker earning P500,000 annually, (32%), Vietnamese worker earning equivalent of P500,000 (20%), Cambodian worker earning equivalent of P500,000 (12%), Malaysian worker earning equivalent of P500,000 (11%),
Thai worker earning equivalent of P500,000 (10%), Singaporean earning equivalent of P500,000, (2%), Bruneian worker earning equivalent of P500,000 (no taxes).
Last year, PCIJ’s MoneyPolitics focused on the personal income tax. How much is the highest and what is the breakdown? Click here for a link to our Data A Day “What is the highest personal income tax rate in the Philippines?“
You can also click on this link to view more data on income tax across the world on tradingeconomics.com.
The Philippines has also signed agreements with 37 countries in the world that prevent double taxation for Filipino workers in these nations. What are these countries? You can click on this link to “37″ on our MoneyPolitics website.