Binay to BIR: Have a heart, spare schools from being taxed

Senator Nancy Binay on Sunday made an appeal to the Bureau of Internal Revenue (BIR) to withdraw Revenue Regulation (RR) No. 5-2021 which would impose a 150% increase to the income tax of private schools.

“Marami na nga sa ating mga private school ang nagsara na dahil sa pandemya. Kung ipapatupad ang revenue regulation na ito, siguradong mas marami pa sa kanila ang tuluyan nang magsasara,” she said.

Under the regulation issued on April 8, the corporate income tax on so-called proprietary educational institutions that are run by stock corporations would be increased to 25 percent from the current 10 percent.

Binay said imposing additional taxes on private schools is contrary to the intent of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act which was passed to help ease the effects of the pandemic on businesses through lower corporate income taxes.

“Tingin namin sa Senado merong lihis sa pagkaka-interpret ng batas. We passed the CREATE Law to help businesses survive the effects of the pandemic through tax incentives,” she said.

“The law plainly states (Section 2, paragraph-d) the need to create a more equitable tax incentive system that will allow for inclusive growth and generation of jobs. Wala sa intensyon ng batas dagdagan pa ng pasanin at pasakit ang mga eskwelahan,” Binay said.

The senator said that the regulation is clearly against the spirit of the law, and asked the BIR to immediately rescind its issuance.

“Sa panahon ngayon, let’s be more sensitive to the struggles our kababayans are going through. Ito ang panahon ng pagtutulungan, at bilang mga kawani ng gobyerno, dapat nasa tamang pwesto ang mga puso natin para sa kapwa Pilipino,” Binay pointed out.

Binay supports Senate Bill 2272 filed by Senator Sonny Angara which seeks to amend a section of the National Internal Revenue Code (NIRC) that aims to correct an erroneous interpretation on the tax imposed on proprietary educational institutions.

“Tulungan natin silang maka-survive. Wag na nating padapain pa lalo ang mga private school na nagpupumilit na makabangon,” she added.

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Source: Latest Politics News Today (Politics.com.ph)