Senator Win Gatchalian is pushing to ease the tax burden on micro businesses through the GINHAWA measure amid continuing economic uncertainty brought about by the Middle East tensions and high oil prices.
“Kapag pinagaan natin ang buwis ng maliliit na negosyo, mas mapapalago nila ang kanilang kabuhayan at masisiguro ang tuloy-tuloy nilang kita at trabaho para sa kanilang mga empleyado,” said Gatchalian, vice chairperson of the Senate Committee on Ways and Means.
The proposed GINHAWA measure, or the Granting Increase in Take-Home Pay for All Working Filipinos Act, allows an additional deductible expense equivalent to 50% of labor expenses incurred by micro-entrepreneurs that include sari-sari stores, carinderias, laundry services, tailoring shops, food stalls, and small e-commerce businesses, among others.
“Lowering taxes would also encourage informal businesses to register, opening doors to bank loans and expansion in support of the country’s economy.”
The veteran legislator pointed out that lowering taxes would also encourage informal businesses to register, opening doors to bank loans and expansion in support of the country’s economy.
As per Republic Act No. 11976, or the Ease of Paying Taxes (EOPT) Act, micro taxpayers are those whose gross sales for the taxable year are less than P3 million.
