Around 1.3 million Filipinos will enjoy the lowering of income tax rates under the Tax Reform for Acceleration and Inclusion (TRAIN) Law in 2023, Senate ways and means committee chairman Sherwin Gatchalian said Wednesday.
“Halos 1.3 million ang makikinabang dito sa pagbaba ng income tax rate (Almost 1.3 million will benefit from lower income tax rate this year),” Gatchalian said in an interview on Unang Balita.
“Maganda nga ‘yung timing kasi marami tayong pangunahing bilihin na tumataas ngayon at itong mauuwi nilang mas malaking take home pay ay magagamit nila sa mga pangunahing bilihin,” he added.
(The timing is good because the price of many basic commodities today are increasing and this bigger take home pay will allow them to buy their needs.)
Gatchalian, one of the authors of the TRAIN Law, said the lowering of income tax rates will not affect government projects and services as the Sin Tax will increase in 2023.
“Ang nangyari dito bumababa ang ating buwis pero tumaas naman ‘yung Sin Taxes katulad ng alcohol, sigarilyo…kasi gusto rin natin maging healthy ang ating mga kababayan kaya tinaasan nang kaunti itong mga Sin Taxes,” he said.
(The income tax has decreased but we increased the Sin taxes which we impose on alcohol and cigarette products.)
In December, the Bureau of Internal Revenue announced that starting January 1, 2023, those with annual taxable income below P250,000.00 are still exempt from paying personal income tax, while the rest of taxpayers, except those with taxable income of more than P8 million, will have lower tax rates ranging from 15% to 30% by 2023.
To maintain progressivity, the BIR imposed a 35% tax rate on top individual taxpayers with annual taxable incomes exceeding P8 million, up from 32% previously.–AOL, GMA Integrated News
