In February 7, 2014, Senator Sonny Angara filed a bill which aims to re-structure the current Income Tax bracket in the country.
Officially named as AN ACT AMENDING SECTION 24 OF THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED, AND FOR OTHER PURPOSES or SENATE BILL NO.2149, the bill is currently pending under the Senate Ways and Means Committee. It had its First Reading on March 3, 2014.
Sen. Angara filed the bill believing the current income tax bracket is outdated and do not keep up with the inflation rate increase since the 90’s. Retaining the same income bracket which was based on a lower price index then, leaves the working class overtaxed and salary values became lower.
With the current scandals involving public money which is primarily sourced from people’s taxes, the clamor for the passing this bill is becoming louder. In congress, the bill seeking to adjust the ceiling of taxable amounts for 13th month pay and bonuses have already passed 3rd reading, and this Angara bill has already resumed discussions in the committee level, promising to fast track its passage.