The incoming Duterte administration pledged to cut income tax rate of individuals and corporations by seven percent from the current 32 to 25 percent. And Internal Revenue Commissioner Kim S. Henares cautioned fiscal officials to be more careful in adjusting tax rates as it might result in fund shortages that could slow down government’s economic and social programs. The projected tax cut translate to P55 billion in lost revenue annually or more, Henares said. Kim S. Henares Records show that income tax (IT) is the single biggest source of collection of the bureau, constituting P784 billion, or 60 percent of the P1.3-trillion collection in 2014. Revenue officials said if Congress finally approves the seven percent IT cut, the P784 billion take would be reduced roughly by P55 billion annually and even much higher. Lawyer Paula Alvarez, spokesperson of the incoming Finance Secretary Carlos Dominguez in a radio interview said the [...]
