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Private schools say new BIR circular will cause 'irreparable' damage'

Published Jun 23, 2021 02:46 pm

A group of private schools said the new tax hike policy of the Bureau of Internet Revenue (BIR) will cause "irreparable" damage to private schools, stakeholders, and local communities.

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"The new tax rates will burden the schools during this period while we are fighting for survival and our very existence," Save Private Education said in a statement.

The group said the new circular will directly affect students, student-athletes, scholars, parents, faculty, and staff.

The tax hike policy will also limit funds for faculty, staff development, and the improvement of facilities and innovation activities.

"Members of the communities build around schools, such as school uniform sewers, cafeteria workers, carinderias (food stalls), sari-sari stores, dormitories, janitorial/security services, school bus drivers/helpers, bookstores, book suppliers, and informal businesses around the campuses, will also be severely affected. These are all a large and vital partner of the government in providing quality education nationwide," Save Private Education underscored.

If enforced, BIR's Revenue Regulation 5-2021 will increase private schools' tax rate to 25 percent -- a 15 percent rise from the sector's regular tax rate.

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