Nation

LAWMAKER ASKS BIR TO RECONSIDER TAX INCREASE ON PRIVATE SCHOOLS

/ 7 June 2021

SENATOR Richard Gordon on Sunday asked the Bureau of Internal Revenue to reconsider its decision to impose a 25 percent tax rate on private schools, saying the move is “very unwise and untimely.”

“Increasing the tax on private schools at this time when we face a global pandemic is truly inappropriate. A lot of them are struggling with their financial condition, and so, the BIR should tarry a little in imposing higher taxes. This will surely hit them hard,” Gordon said.

He added that the BIR’s new regulation goes against the CREATE Law, which was  legislated to reduce the tax burden on private schools.

“Talagang nag-aalsa ang galit ng private schools. Tinawagan ako nang maaga ang mga eskwela at sinasabi sa akin, hindi nila makakaya ‘yan at gipit na gipit na. Dapat humanap tayo ng paraan kung papaano makakakuha ng dagdag na buwis at dapat makita natin na number one ang education,” he said.

The RR 5-2021 of BIR imposes a 25 percent corporate income tax on private schools, cancelling the 1 percent pandemic rate offered by the CREATE Law.

Gordon said the government should find other ways on how to generate tax. He also called for higher budget for the education sector.

“Dapat unahin natin ‘yan sapagkat matagal na tayong napag-iwanan ng ibang bansa. Ang mga guro natin, dapat makita kaagad kung ano ang kailangang gawin para sa ganoon, mabigyan sila ng karapat-dapat na suporta,” he said.