A solon on Tuesday requested the government to give a tax credit to middle-income earners amid the pandemic coronavirus disease 2019 (COVID-19).
Representative Niña Taduran of ACT CIS party-list said the tax credit could be the same amount given to low-income families under the social amelioration program. The program does not cover middle-class families.
“A lot of middle-income families have also been badly hit by the slowdown in the economy and the work stoppage. They could be small businessmen or employed, but their companies couldn’t sustain their operations,” Taduran said.
“Having to pay ₱5, 000 to ₱8, 000 less in taxes means ₱5, 000 to ₱8, 000 more that they can use for their personal needs,” the solon added.
Taduran said while granting the tax credit may initially reduce the income of the government. Still, it would add buying capability for the middle-class families who could also aid the country’s economy.
“Furthermore, this will not require additional budgetary expense on the part of the government,” Taduran said.
Social amelioration for the middle-class
Cavite Governor Jonvic Remulla has also asked President Rodrigo Duterte to include the middle-class families in the government’s social amelioration program.
In a letter to Duterte, Remulla described the pandemic as “a time of crisis for everyone” and “not just the poorest of the poor, but also those who have built much but not enough.”
“They are often overlooked. They pay the most taxes. They keep our economy alive. They are mostly law-abiding citizens. They need a break,” he said.
President Duterte agreed with Remullad and called his appeal “valid.” However, he noted that the government’s P270-billion budget for the pandemic COVID-19 was not enough.
“I agree. I know the political-economic horizon of the country,” Duterte said.
The President called on Finance Secretary Carlos “Sonny” Dominguez to source out more funds. “In the meantime, we would work double-time for the middle class that you mention,]” Duterte said.
The government allocated P200 billion worth of aid for the 18 million low-income families in the country. He described the financial assistance as the “largest and widest social protection program in the country’s history.”