Smarter News Now
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting
No Result
View All Result
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
  • Top News
  • Economy News
  • Forex News
  • Investing News
  • Stock News
  • Politics News
  • Editor’s Pick
No Result
View All Result
Smarter News Now
No Result
View All Result
Home Investing News

Diokno says ‘too early to tinker’ with TRAIN, CREATE reforms

by
July 13, 2022
in Investing News
0
Diokno says ‘too early to tinker’ with TRAIN, CREATE reforms
0
SHARES
11
VIEWS
Share on FacebookShare on Twitter
Bangko Sentral ng Pilipinas Governor Benjamin E. Diokno

FINANCE Secretary Benjamin E. Diokno said it is too early to make adjustments to recent tax reform laws, signaling his reluctance to back a House Bill seeking to provide tax relief for the poor and middle class.

“We just amended both personal income tax and corporate income tax. Let’s give the new tax system a chance to operate. Too early to tinker with it,” Mr. Diokno told reporters on Wednesday.

He was reacting to the proposed Tax Reform Act for the Masses and the Middle Class (TRAMM), which hopes to “correct” the previous government’s two major tax measures, the Tax Reform for Acceleration and Inclusion (TRAIN) law and the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law.

ACT Teachers Representative France Castro filed the TRAMM bill to address the “imbalances brought by regressive tax reform laws such as TRAIN and CREATE that offer little benefit to poor and middle-class families.”

The TRAMM bill sets a 20% maximum personal income tax rate for individual citizens, with their first P400,000 exempt from tax.

It seeks exemptions for senior citizens and persons with disabilities and raises the cap for tax-free bonuses to P150,000.

If signed, TRAMM will require the Bureau of Internal Revenue to “set up a progressive, 10-bracket (in the minimum) personal income tax schedule.”

The TRAIN law was Package 1A of the tax reform program, while the CREATE law was Package 2 of the previous government’s Comprehensive Tax Reform Program.

Under TRAIN, individual taxpayers earning over P250,000 but not more than P8 million pay tax rates of 15-30% starting Jan. 1, 2023.

It also allows the self-employed and professionals earning P3 million or less to avail of an optional 8% tax in lieu of the graduated personal income tax and percentage tax.

It also exempts from income tax the first P250,000 earned by individual taxpayers, and reduced the Donor’s and Estate Taxes were reduced to a fixed rate of 6%.

The CREATE law, billed as a pandemic relief measure for businesses, reduced the corporate tax from 30% to 20% for small businesses with taxable income not exceeding P5 million and total assets excluding land not exceeding P100 million, and 25% for all other corporations, both domestic and foreign.

“Rising prices and untamed inflation rates in the past few years all the more justify the need for a tax reform package that would reduce the income tax rates of overburdened Filipino working-class families. Reducing income tax rates for working families will not only improve their way of life, but also strengthen their purchasing power which will boost overall domestic demand for consumer goods,” Ms. Castro said in a statement on Tuesday.

Headline inflation hit 6.1% in June, the highest in nearly four years. This brought the first-half inflation average to 4.4%, above the central bank’s 2-4% target range. The year-to-date average is still lower than the official 5% forecast for the year. — Diego Gabriel C. Robles

ShareTweetPin

Related Posts

Stocks decline on profit taking, recession fears
Investing News

Stocks decline on profit taking, recession fears

August 23, 2022
Peso climbs vs dollar as RTB offer starts
Investing News

Peso climbs vs dollar as RTB offer starts

August 23, 2022
PNR cancels bids for 3 projects after finding them ‘non-feasible’
Investing News

PNR cancels bids for 3 projects after finding them ‘non-feasible’

August 23, 2022
Senate grills Rodriguez on approval procedures for sugar import order
Investing News

Senate grills Rodriguez on approval procedures for sugar import order

August 23, 2022
Trade dep’t expecting sugar price monitoring report by Friday
Investing News

Trade dep’t expecting sugar price monitoring report by Friday

August 23, 2022
Fisherfolk seek halt to reclamation on municipal fisheries
Investing News

Fisherfolk seek halt to reclamation on municipal fisheries

August 23, 2022
Next Post
Wetherspoon’s warns of £30m loss as older drinkers stay at home

Wetherspoon’s warns of £30m loss as older drinkers stay at home

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Email Address *
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!
 

Recommended

Bitcoin History And Presence In The Market With Application

Bitcoin History And Presence In The Market With Application

June 9, 2022
First Philippine Overland Expedition boasts P1-M kitty

First Philippine Overland Expedition boasts P1-M kitty

June 26, 2022
Tech space seen as leader in setting inclusive policies

Tech space seen as leader in setting inclusive policies

June 23, 2022
Country’s debt-to-GDP ratio rose the most in 2 years, says think tank

Country’s debt-to-GDP ratio rose the most in 2 years, says think tank

July 21, 2022
Full capacity allowed in Alert Level 1 areas

Full capacity allowed in Alert Level 1 areas

June 7, 2022
Vitarich earnings rise 18% to P107M

Vitarich earnings rise 18% to P107M

August 4, 2022
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting

Copyright © 2022 SmarterNewsNow.
All Rights Reserved.

Disclaimer: SmarterNewsNow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

No Result
View All Result
  • About Us
  • Contact Us
  • Email Whitelisting
  • Home
  • Privacy Policy
  • Terms & Conditions
  • Thank You

Copyright © 2020 SmarterNewsNow. All Rights Reserved.