Gatchalian prioritizes simplification of tax system for MSMEs
SEN. Sherwin T. Gatchalian said Tuesday he would prioritize measures that will simplify tax procedures for micro, small, and medium-sized enterprises (MSMEs) alongside establishing a mechanism to report abusive government officials involved. in the collection system.
“I want to put taxpayers first on the committee, making sure taxation is as easy as buying goods in Shopee,” the senator, who will chair the Committee on Ways and Means of 19e Congress, said during a speech at a Senate hearing.
“We ensure corruption and errant government officials are addressed,” he added.
He said he wanted “focus on the growing small MSME sector,” which is considered to be “the backbone of our economy.”
MSMEs account for 99.5% of business establishments in the country, 63% of the workforce and around 40% of gross domestic product in recent years, according to data from the Ministry of Trade and Industry.
Mr. Gatchalian said prioritizing MSMEs and other taxpayers while looking at accountability and efficiency requires attention through oversight and not just creating new laws.
OTHER TAX SOURCES
Revenue can also be generated from non-essential goods and casinos, he added.
When asked if he was ready to impose higher taxes on the country‘In the more affluent segment, the senator highlighted the Passive Income and Financial Intermediaries Act (PIFITA), one of the bills he plans to prioritize.
“The PIFITA will not only harmonize the different tax regimes in the different income classes, but also… increase passive income tax levels, so in a sense that problem will be solved through this bill,” he said.
Mr Gatchalian will also put the Property Assessment and Valuation Reform Bill on the priority list, which was part of the previous administration‘s planned tax reform packages.
The proposed measure is expected to generate more revenue for local government units, which are responsible for collecting annual property taxes, and accelerate the rollout of infrastructure projects.
The senator also noted that imposing new or higher taxes requires consideration of other factors.
“The moment is very important to raise taxes,” he said. “This‘It is also very important to listen to people’s calls.”
He also said he was uncomfortable suspending promised voter discounts, especially at a time of heightened inflation.
“We can all contribute to nation building by paying part of our income through taxes, because the income is used to build roads, tools and other things,” said the senator. “But we also have to make sure that our customers, our taxpayers, are not mistreated, victimized and treated like second-class citizens.”
It is seeking to hold oversight committee hearings within the first three months after Congress opens on July 25. — Alyssa Nicole O. Tan