More Tax less Projects?
Now, the Aquino government proposal to impose taxes on voluntary contributions to social security systems, health systems and related others through Memorandum Circular No. 53- 2011 issued by the Bureau of Internal Revenue(BIR),stating that the voluntary contributions to the SSS, GSIS, Pag-IBIG and PhilHealth are subject to government tax have gain criticism from Congresswoman Luz Ilagan saying that to impose taxes on voluntary contributions is wrong because the so-called self-employed worker and own- account workers like vendors, migrant workers and jeepney drivers could barely manage to save for their retirement or for emergencies and imposing tax to their extra hard earned money will add more to their financial poverty and could contribute more to growing poverty rate in the Philippines.
“These are hard earned savings that come from working extra hours, taking more hazardous jobs and belt tightening by scrimping on the family budget. There is no way that the Philippine government can justify the taxes being imposed on the informal sector as it consistently cuts back on spending for social services,”..She said.
The congresswoman also cited the cuts on 2011 National Budget of the Aquino government for education, health and housing reflects Noynoy camp’s deprivation of government services especially to the poor Filipinos.