Foreign business groups in the Philippines are pushing the government to pass a bill to lessen the amount of income tax. According to the group, it will edge up our country into competing with other economies within Asia.
At present, Philippines charge the second highest personal income tax and the highest corporate income tax among the countries that are part of the ASEAN.
The Joint Foreign Chamber (JFC) stated that there is pattern in reducing individual and corporate tax rates in neighboring economies to make their countries more competitive and that the Philippines should keep up with the trend.
Some views contradict the proposal as this may lead to a deficit. However, JFC believes that reducing these rates will invite more investments and trades.
The JFC also said that it supports the raising of consumption taxes to compensate reforms in corporate and individual tax rate. Meanwhile, taxes have been raised on alcohol, cigarettes and tobacco.