Senate likely to block higher taxes for schools, hospitals

MANILA, Philippines — The Senate will likely delete provisions in the second tax reform package pushed by the Duterte administration that increases taxes on educational institutions and hospitals, Sen. Sonny Angara said yesterday.

Angara issued the statement as his ways and means committee is set to start hearings on the second package of the Tax Reform for Acceleration and Inclusion (TRAIN 2) tomorrow after the House of Representatives approved its version of the measure.

“I think it’s very important that we listen to the different sectors, who are saying that this bill could lead to loss of jobs. During this time when our economic growth is lower than before, we must be careful or might be sending the wrong signals to the investment community,” Angara told radio station dzBB.

He said the primary consideration of senators is whether the measure will have an effect on prices and jobs.

The senator cited in particular the version of the Department of Finance (DOF) to increase taxes on publication companies, educational institutions and medical centers.

The DOF wants to increase the taxes of these sectors to 25 percent, which is the corporate income tax it wants to impose from the present 30 percent, he said.

He said while the government is seeking to make education and health services free and more accessible in public institutions, the administration will negate the benefits if it imposes higher taxes.