Gordon co-authors bill amending specious tax hike on private schools
on proprietary educational institutions and hospitals, which are non-profit, was reduced to 1% from July 1, 2020 to June 30, 2023, after which the tax rate shall revert to 10%.
Gordon
Senator Richard J. Gordon co-authored Senate Bill No. 2272 or An Act Amending Section 27 (B) of the National Internal Revenue Code, that modifies and corrects “confusing and erroneous tax regulation” imposed by the Bureau of Internal Revenue (BIR) on private schools. SBN 2272 aims to “clearly indicate that the preferential tax rate shall apply to a. all proprietary educational institutions, including those that are stock and for profit; and b. nonprofit hospitals. “We express our support for this bill as we want to be clear as to whom the preferential tax rates apply to and to show our support for private schools, that’s why we called on the BIR to tarry a little and reconsider
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| June 5-11, 2021
their policy imposing an increase tax rate on private schools,” said Gordon. Gordon earlier released a statement calling the BIR’s measure “very unwise and untimely” especially during this time of global pandemic. He stressed that the new regulation goes against Republic Act No. 11534 or the CREATE Law, wherein the 10% special tax rate imposed
Gordon also emphasized that the law was enacted in order to reduce the tax burden on private schools which are currently struggling with their financial situations and are reeling from the COVID-19 pandemic. “A lot of our people are already facing difficulties because of the pandemic and its economic consequences. What we must do now is to help our people, think of effective approaches on how we can lessen their burden, and not to add to the many woes that they are already dealing with,” he said.
PHILIPPINE STAR/ MIGUEL DE GUZMAN
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