New tax relief pushed
by Jemin B. Guillermo
Roxas City (18 February) -- A tax relief meaure is being pushed to help the country's marginalized sector.
The House of Representatives' online news disclosed that another tax relief bill authored by Speaker Prospero Nograles has already been approved by the House Committee on Ways and Means.
The objective of House Bill 5314 is to help the millions of marginalized Filipinos under the constant threats of the impact of the global economic slowdown.
Said Bill seeks to exempt the public who are securing loans amounting to P10,000 and below from paying documentary stamp tax.
House Bill 5314 is entitled: "An Act exempting pledge of personal property covering a loan of money not exceeding ten thousand pesos from documentary stamp tax, amending for the purpose Section 199 of the National Internal Revenue Code of 1997, as amended."
Under the existing provision of the National Internal Revenue Code of the Philippines, a documentary stamp tax of one peso for every P200 or a franction thereof, of any debt instruments such as pawnshops and other facilities that requires a contract of pledge is required.
"With the prevailing money crisis it is expected many people will pledge or pawn so let's not burden the people with documentary stamps anymore as the government's help in times of crisis," Nograles said.
Foremost to benefit from the expected passage of the proposed amendment are lending institution, particularly the pawnshop business which caters mostly to middle and low income families who patronize pawnshops for emergency financial relief.
Nograles pointed out tha both Houses of Congress are pushing for legislative measures that will provide relief to taxpayers, recognizing that taxation is not solely about raising revenues, but is also to accomplish some desirable non-revenue or social objectives.
The bill, he said, proposes that documents evidencing the receipt of personal property as security for the payment of certain sum of money like a contract of pledge, where the loaned amount does not exceed P10,000 be exempted from payment of the documentary stamp tax (DST).
He added that with the current economic situation, any tax reform effort and revenue scheme should not only be judged according to its fiscal adequacy, equity, and administrative feasibility, but more importantly its impact on poverty, income distribution, and economic growth. (PIA) [top]