The government should simplify tax payment procedures for micro, small and medium entreprises (MSMEs) and self-employed Filipinos to encourage them to file their taxes on time, Senator Francis “Chiz” Escudero yesterday said.
Apart from lowering individual and corporate income taxes, Escudero said it would be worthwhile for the government to also come up with mechanisms that would make tax payment easier for MSMEs and self-employed Filipinos which comprise the second largest class of workers in the country.
As far as he is concerned, Escudero said the tax issue is not just about lowering tax rates but simplifying tax payment procedures to encourage compliance among MSMEs and self-employed professionals, pointing out that MSMEs comprise 99 percent of all businesses in the Philippines.
“The opponents of tax reform insist that we will lose revenue if we cut tax rates. What they fail to consider is that more people will want to pay their taxes if these were fair and compliance was easy,” Escudero said in a statement.
“I believe all income-earning Filipinos would want to pay taxes because it makes them feel they are part of nation-building, but the high tax rates and the tedious payment system are discouraging compliance,” he added.
“How can your regular taxi drivers or tiangge stall owners afford to pay accountants just to comply with Bureau of Internal Revenue (BIR) regulations?” said the senator who is also vying to be vice president in the May 2016 elections. (Hannah Torregoza)
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