Nation

SENATORS DECRY IMPOSITION OF HIGH TAXES ON PRIVATE SCHOOLS

/ 2 July 2021

SENATOR Richard Gordon denounced the “constitutional double-talk” of the executive branch for giving budgetary priority to the education but imposing high tax rates on schools.

Gordon explained that Republic Act 11534, or the Corporate Recovery and Tax Incentives for Enterprises Act was passed to provide incentives to businesses, including schools, during the pandemic.

“So why are we now getting back and saying that they should be taxed, proprietary schools should not be given the 1 percent that is being given to all the other schools? And why should we now bring them back to 25 percent when they were already paying 10 percent in the midst of the crisis?” the senator asked.

Senator Imee Marcos reminded the Department of Finance and the Bureau of Internal Revenue that the Senate and the House of Representatives do not intend to deprive beleaguered educational institutions of their well-deserved reduction in corporate income tax.

Marcos said that the Supreme Court, in the case of Commissioner of Internal Revenue versus Bicolandia Drug Corp., settled that there should be no regulation in conflict with the law.