PNoy closes door on income tax cuts

President Benigno Aquino III’s position on proposals to lower income tax rates remains unchanged despite speculations about his supposed backroom talks with leaders of Congress. 

At the Foreign Correspondents Association of the Philippines’ annual presidential forum held in Parañaque City on Tuesday, Aquino reiterated his campaign promise that his administration will not impose any new taxes. 

“By reviewing the concept of income tax, it cannot be taken as a singular activity. There is a reduction in revenue, there has to be compensation elsewhere,” he said regarding the legislative proposals by Senator Sonny Angara and Marikina Rep. Miro Quimbo. 

Quimbo earlier said the proposal would pass in the present 16th Congress, noting the President has given instructions to study a revised measure. 

However, Aquino said passing the measure will result in “unintended consequences that we’d rather not undergo... We’re still operating under a budget deficit.” 

The President has said that lowering the income tax rates will reduce revenues, and might force the government to raise the existing value-added tax from 12 to 14 percent. 

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