As we await for President Benigno S. Aquino's final State of the Nation Address (SONA) to the nation next Monday, July 27, 2015, many taxpayers are hopeful that he will include the Tax Reform Agenda for his final year in office.
Senator Sonny Angara recently mentioned that lower income taxes will be PNoy's best good-bye gift to the Filipino people as he cited the numerous arguments in favor of it.
And that is so true.
There had already been a lot of discussion in the past year between legislators, tax experts (led by the Tax Management Association of the Philippines or TMAP) and the DOF on this matter, particularly on the revision and updating of the individual income tax table.
In fact, during the last hearing at the House of Representatives Ways and Means Committee chaired by Congressman Miro Quimbo, all parties, including the DOF, already agreed on certain principles to make the personal income tax system more equitable. All that has to be done is for our legislators and the DOF to finally agree on a revised personal income tax table with updated tax brackets and effectively lower income tax rates.
There are still five (5) more months before the year ends. A lot of things can still be done by Congress in passing a law that will jump-start this country's Tax Reform Agenda.
Many of us, however, believe that Congress can only bravely do so IF AND ONLY IF they get the go-signal from the President who, unfortunately, has been hearing mostly misgivings from his Executive team, which was looking only at its short-term effects.
While it is understandable that the Government's revenue collections will likely go down in the short-term because of the proposed tax cuts, as a leader, PNoy has to look forward and see beyond what is best for this country in the long-term, way beyond his 6-year term which will soon about to end.
PNoy has already done this for the country's educational system when he supported the Department of Education's (DepEd's) shift to the K-12 program -- this despite the many transition blues in the short-term. Maybe the only difference in this case is that DepEd was bold enough to see beyond the birth pains, believing that this will be good for our educational system and provide more opportunities for our youth in the long-term.
We continue to hope that, as the President reflects on his last year in office in preparation for his final SONA, he will be brave enough to leave behind a lasting legacy to his people -- that is, a Tax Reform Agenda that will provide, not only immediate relief for many low and middle-class taxpayers who have long been suffering from very high income tax rates but, also provide a roadmap towards developing a tax system that will be more fair and equitable to all concerned.
For it is only when a tax system is perceived to be fair and equitable that taxpayers will willingly contribute their share in nation-building.
Let's wait and see on Monday if PNoy will grab this historic opportunity. He can choose to look away and pretend not to hear the clamor for tax reform. Or, he can choose to move forward and leave behind that one great legacy of Philippine Tax Reform.
