By Liza Soriano
Joyce Gem – Medium (Infographic courtesy)
MANILA –The Tax Reform for Acceleration and Inclusion (TRAIN) Law, with which Senator Win Gatchalian was a co-author, is expected to boost the take-home pay for the majority of middle-class taxpayers starting this year.
“Inaasahan natin na lalo pang lalakas ang domestic consumption na may malaking kontribusyon sa paglago ng ating ekonomiya. Dahil sa pinababang buwis, mas mataas ang take-home pay ng mga empleyado na magiging malaking tulong sa gitna ng mataas na presyo ng mga bilihin,” Gatchalian said.
Beginning this year, individual taxpayers who earn P250,000 a year but not over P8 million will be subject to lower income tax rates ranging from 15 percent to 30 percent from 20 percent to 32 percent previously.
Gatchalian also cited the case of an information technology junior executive who earns P45,000 monthly or P585,000 yearly. Additional food items can be bought with an additional monthly savings of P1,395.83 or P16,750 annually.
“Dahil sa mas mataas ang kanilang kita, inaasahan din natin na magiging maganda itong insentibo para sa mga empleyado na lalo pa nilang paghusayan ang kanilang trabaho at magtulak sa kanila para mag impok o kaya ay mamuhunan,” Gatchalian said.
Individual taxpayers who have taxable income of P250,000 or less per year would still be exempt from paying income tax.