A senator is pushing the exemption of micro businesses earning less than P250,000 annually from paying percentage tax.
Senator Bam Aquino pushed for such proposal during the Senate’s period of amendments on the Tax Reform Acceleration and Inclusion Act (TRAIN) bill. Such exclusion, he said, should be on top of the income tax exemption being enjoyed by micro enterprises.
Aquino said he received many reports that some small businesses are being required to pay the percentage tax rate of fixed 3%.
“Exempted na sa percentage tax ang mga fishball vendors, sari-sari store owners, pati ang mga magsasaka at mangingisda na kumikita ng 250,000 pesos or less sa isang taon,” said Sen. Bam Aquino.
Aquino, who is also the principal sponsor of the Go Negosyo Act, said the amendment would free the micro enterprises from harassment by tax agents without additional cost to the government.
The senator also proposed to simplify bookkeeping records and requirements for micro businesses.
Aquino thanked fellow senator Sonny Angara, chairman of the Committee on ways and means, for accepting the proposed amendments. The Senate is set to resume the deliberations on the tax reform package bill on Monday next week. /kga