Wednesday, November 13, 2013

People Pay Taxes from their hard earned money for Support from the PH Gov'T

We have today's business development in the Philippines because of great people and economy. Companies strive to deliver good service and products to its clients and end-consumers to continue the growth and development that has began. Then, the Philippine government taxes the revenue from the company's operation through collection of taxes by Bureau of Internal Revenue. The money collected would be transferred to national government fund. Moreover, employees are also being tax by the government authority with a 5% withholding tax. Aside from withholding taxes, everyone is paying a 12% VAT for the goods and services. The huge money is transferred to government agencies to support activities such as agriculture, education, defense, public infrastructure, government employee salaries, socio-civic, environment, and others as well. -My first question is how much do they allot for each agency and if there are excess cash funds, are they returned properly to the national government fund?

Rising complains from business owners who are paying high taxes due to high tax rates and numerous governmental fees that the government interventions and policies which are practically unsound and obscure because of slow improvement as a whole (there's still great poverty) and huge fund allocation in the pork barrel (politicians salary) and gimmick projects for the welfare of the people, when actually there is not. A story of businesswoman who fully complied the local PH laws and paid the necessary obligation and taxes to the government, was harassed by a BIR to pay him additional money (fraud) saying that everything is not perfect and even the system fails. This BIR Collecting officer impolitely responded to the woman, "do you think I will trust your financial records?" -My second question is the trust given by the public people to the elected officials (also other government authorities) becomes only an event during the election period and not really a genuine service for the public interest?

My Proposal: If the Philippine government wants a complete trust that every business owners and employees pay their proper taxes, they must lower down the tax rates to a reasonable amount, improve the overall system, and allocate more funds to the public infrastructure and social welfare without any local official of an agency to have a direct power to control the funds that will be use for their projects. Cash Fund allocation must be handed over down to a committee responsible in disbursing the funds that requires multiple signatures of the group members, a positive feedback from the community through ID signatures and real evidences such as videos to ensure that they had participated well in the project and receive the benefits.

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