House minority to scrap income tax for 30k and below earners

House minority to scrap income tax for 30k and below earners

- House Minority Leader Danilo Suarez pushes for exempting 30k and below earners from paying income tax

- He is planning to cover government losses by imposing tax on MWSS

- Some concerns about the said proposal include consumers paying more for water consumption

House minority to scrap income tax for 30k and below earners

House Minority Leader Danilo Suarez and House Senior Deputy Minority Leader Lito Atienza (Photo credit: rappler.com)

Those who earn below P30,000 per month may soon rejoice if the plans of House Minority Leader Danilo Suarez are carried out. Suarez wants to eliminate payment of income tax by Filipinos who earn P30,000 and below.

Tax exemptions, such as the one being proposed by Suarez, will mean revenue loss for the government. However, the minority leader is not without answers.

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He said that such a huge step will mean a P27-billion revenue loss for the government. This loss would then have to be sourced from another.

Suarez is planning of shifting the burden to the Metropolitan Waterworks and Sewerage System (MWSS). It plans to impose a tax on the water that MWSS acquires from the country’s watersheds.

House minority to scrap income tax for 30k and below earners

Maynilad (Photo credit: interaksyon.com)

Suarez, a party mate of former Vice President Jejomar Binay under the United Nationalist Alliance (UNA), said that it was the battle cry of Binay to abolish income tax for the country’s poor.

“During the campaign, no less than our candidate VP Binay made the statement that he will remove the income tax of those receiving P30,000 and below. We here as minority, in UNA, would like to pursue that, lowering the income tax for those earning P30,000 and below,” said Suarez during a press conference held on Wednesday, August 17.

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Suarez said that he will be passing a bill that would amend the charter of MWSS so that it will be taxed for the water that it distributes to service providers like Manila Water and Maynilad. He believes that the tax that will be imposed on MWSS will cover the losses from exempting 30k and below earners.

Some concerns about the proposed bill is that it will just lead to added water cost, thereby still shifting the burden on consumers.

House minority to scrap income tax for 30k and below earners

Income (Photo credit: bworldonline.com)

To address this concern, House Senior Deputy Minority Leader Lito Atienza, said they would not allow pass on provisions that will have MWSS increasing charges to cover added costs.

President Rodrigo Duterte has encouraged the 17 Congress to pass bills lowering personal income tax and also corporate income tax. – SD, Kami Media

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