Senator Nancy Binay on Sunday urged the Bureau of Internal Revenue (BIR) to “have a heart” and spare private schools from a 150 percent increase in income tax.

Binay said the BIR should withdraw its Revenue Regulation No. 5-2021 which seeks to impose higher income tax on so-called proprietary educational institutions could force more private schools to close down amid the COVID-19 pandemic.

“Marami na nga sa ating mga private school ang nagsara na dahil sa pandemya. Kung ipapatupad ang revenue regulation na ito, siguradong mas marami pa sa kanila ang tuluyan nang magsasara (Many of our private schools were forced to close due to the pandemic. If they will push through with implementing this revenue regulation, I’m sure more schools will close down),” Binay said in a statement.

“So many people are having a hard time. So many teachers have been laid off, so many schools have closed down. Many academic institutions are on the verge of collapse. Taxing private schools with 25% does not make any sense at all. Konting puso naman sana (Have a heart),” she appealed.

The BIR’s regulation, which was issued on April 8, 2021, increases the income tax on so-called proprietary educational institutions that are run by stock corporations from the current 10 percent to 25 percent.

Binay said imposing additional taxes on private schools is contrary to the intent of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act which was passed to help ease the effects of the pandemic on businesses through lower corporate income taxes.

“We passed the CREATE Law to help businesses survive the effects of the pandemic through tax incentives. The law plainly states (Section 2, paragraph-d) the need to create a more equitable tax incentive system that will allow for inclusive growth and generation of jobs,” Binay said.

“Wala sa intensyon ng batas dagdagan pa ng pasanin at pasakit ang mga eskwelahan (There’s nothing in the law that seeks to pass more burden to schools)," Binay said.

The senator said that the regulation is clearly against the spirit of the law, and asked the BIR to immediately rescind its issuance.

“During these times, let's be more sensitive to the struggles our kababayans (fellowmen) are going through,” Binay appealed.

Binay also expressed her support to the bill filed by Sen. Sonny Angara that aims to correct BIR’s interpretation on the tax imposed on proprietary educational institutions by amending a section of the National Internal Revenue Code (NIRC).

“Tulungan natin silang maka-survive. Wag na nating padapain pa lalo ang mga private school na nagpupumilit na makabangon (Let us help them survive. Let’s not allow private schools to collapse further)," she stressed.

Though the bill has yet to be passed, the lawmaker urged the BIR to be more circumspect in its interpretation of laws and applying additional taxes during a pandemic.