Will You Be Bold Enough To Take A Step?
The Inquirer.Net came with this news headline last week, “Senate committee OKs tax reform bill”
I wonder what your reaction was when you heard this on the news.
Natuwa ka ba? or Natawa ka?
I for one, I caught myself smirking and heard myself with a soft “haha” laugh until my co-teacher looked at me and asked.
Overview of the Tax Reform Bill
Let just have a quick overview of the Tax Reform Bill
Who are exepmted?
For income tax: Filipino workers who have an annual income of P150,000
For estate tax: inherited property valued at P5M
For VAT: 3-in-1 coffee and milk
Who will benefit?
Average income earners including:
Teachers
Call center agents
self- employed entrepreneurs
Small businesses owners with total annual sales of up to P3M are exempted to pay the VAT
What else will be enjoyed?
Additional exemption worth a maximum of 100K Pesos (P25K monthly income tax free) to those with up to 4 dependents
How much can an average income earner will saved
Teacher of 2 dependents with a monthly income of P17, 254 can save P1, 098 monthly
Call center agent can also have an annual savings of 16,019 Pesos because of their reduced tax
You can read more about this news at Inquirer Net
Let’s Take a Look At The Highly Possible Effect
Now, is this good? Or bad?
Let’s go back to my smirking reaction when I read this news.
I laughed with a soft hahaha sound because of the following reasons:
1.The exemption of the 99% of the 7.5 Filipino taxes means lost of collection on the part of the government. Therefore, where will they get the extra amount para punuan ang kawalan na ito?
2.The government imposes excise tax sa mga big companies like those that manufacture high sugar content drinks – well except the 3-in-1 coffee. This excise tax on cars and fuels and on beverages will cause the prices of needed commodities to rise.
Tell me honestly, kapag pinatungan ng limang piso or anim na piso ang isang 8 ounce bottle of Coke or Pepsi or Mirinda, hindi ka na ba iinom nito? Masarap sya di ba lalo lalo nap ag ang ulam ay fried chicken or lechon baboy.
Look at the cigarettes, no matter how expensive the price is, inuuna pa siayng bilhin kesa sa candy ng anak (I saw this one – true story)
Also, kapag nag-taas ang pamasahe, lalakarin mo na lang ba ang 5-10-20 kilometrong haba ng kalsada from your home to work? I bet not.
3.But this third reason makes my happy hormone dance. The approval of the tax reform bill will mean many ordinary employees will have extra money to bring home on pay days which means they will have more buying power.
4.And because of this mind set that we have more purchasing power, I am imagining to see more people queuing at the mall, at the fast food restaurants, at the grocery stores.
The Question is, “So What? What’s in there for you and Me?”
We look at the Effect of this cause
Who will really benefit more from this?
My answer is the wise Filipinos, who will
a.start a small business, who will sell goods and services na kailangan ng nakakarami
b.be partnering up with the giant companies in the Philippines that provide goods and services na kailangan ng nakakarami at gustong gusto ring binibili ng nakakarami kahit hindi naman talaga nila kailangan.
When I attended The Wealth Circle Summit of the Truly Rich Club and listened to Mr. Edward Lee’s Stock Report, I felt his optimism regarding the future of the Philippine stock market. And I remember that one of the reasons of this high hopes he mentioned was this Tax Reform Bill.
My Challenge To You TODAY
If this tax reform bill will be signed by the President and be implemented by the end of this year or early next year, which ordinary employee will you be?
a.The one queuing at the mall to grab the latest gadget on sale?
b.The one watching the gains of his stock market portfolio because you partnered up with the giant companies that sell goods and services that Filipinos cannot live without?
It’s Your choice.
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