Senator Risa Hontiveros has called on the Bureau of Internal Revenue (BIR) to revoke the 25% corporate income tax hike imposed on private schools.
Hontiveros said this move is “anti-students” as this may only displace more students when private schools are forced to close due to increased economic pressure brought by the pandemic.
“Hindi naman basta-bastang negosyo ang mga private schools.”
“Hindi naman basta-bastang negosyo ang mga private schools. Hindi lang kita nila ang matatamaan sa tax rate na ito. May mga guro na baka hindi na makapagturo at may mga estudyanteng mapipilitang mag-adjust kung sakaling magsara ang paralaan at kailangan mag-transfer. Isang malaking adjustment na nga ang online learning, tapos bigla pa nating babaguhin ang komunidad nila?” the veteran legislator asked.
BIR’s Revenue Regulation 5-2021 obliges private schools to pay a 25% corporate income tax, disqualifying them from the 1% rate offered by the CREATE Act’s pandemic rescue package.
The seasoned lawmaker said she supports the position of the Coordinating Council of Private Educational Associations of the Philippines (COCOPEA) that pushes for for-profit private schools to be entitled to CREATE’s package that provides for 1% tax from July 1, 2020 until June 30, 2023.
“Our private educational institutions are in dire need of a lifeline. Ang mga paaralan ay isa sa mga institusyong dapat ay unang-una nating nililigtas kapag may krisis. Punong-puno na nga ang ating mga public schools, hirap narin ang mga guro doon, kaya sana ang pagsuporta sa mga private schools ay maibigay natin,” the lady senator stressed.
She added she will co-author the bill of Senator Sonny Angara (Senate Bill No. 2272) to clearly and categorically cover proprietary institutions in the tax benefit.
COCOPEA has stated their sector “has not yet recovered from the debilitating effects of the K-12 law and is in the midst of struggling with the steep drop in enrollment caused by the pandemic”.
Enrollment in private schools declined by 50%, which is equivalent to 2 million students.
Last year, around 250,000 private school students transferred to public schools.
Hontiveros said that there are also smaller and mission-driven private schools that serve the needs of remote areas, and these schools need the lifeline the most.
“We cannot afford to lose more schools.”
“We cannot afford to lose more schools. We cannot further handicap our education system,” she said.
“Huwag na natin palalain ang pasan na problema ng mga eskwelahan, ng ating mga guro at estudyante. Sa panahong lahat ay naghihikahos, dapat nagiging mas sensitibo tayo sa pangangailangan nila. Higit sa lahat, kinabukasan ng ating mga anak ang nakasalalay dito,” Hontiveros concluded.
