Reacting to the latest Bureau of Internal Revenue policy imposing a hiked tax rate on private schools, Senator Richard Gordon has called this measure very unwise and untimely, thus, called on the BIR to reconsider the regulation.
“Increasing the tax on private schools at this time when we face a global pandemic is truly inappropriate. A lot of them are struggling with their financial condition, and so, the BIR should tarry a little in imposing higher taxes. This will surely hit them hard,” Gordon said in a media release.
Gordon added the new regulation goes against Republic Act No. 11534, or the Create Law, where the 10-percent special tax rate imposed on proprietary educational institutions and hospitals, which are non-profit, was reduced to 1 percent from July 1, 2020 to June 30, 2023, after which the tax rate shall revert to 10 percent.
He stressed that this was legislated to reduce the tax burden on private schools which are reeling from the Covid-19 pandemic.
Speaking before members of the National Press Club on Friday, Gordon said the government should instead find other ways on how to generate tax, and that the education sector should be prioritized and be provided with higher budget allocation.
“The private schools are up in arms. I’ve called the schools early and they told me that they can’t take this. We have to look for ways how to generate more taxes and we should see that education is no. 1,” he said.
“We should prioritize this because we have been left behind by other countries. We should immediately the issues of our teachers so that we can give them the appropriate support,” Gordon added.*PR