With 250 “yes” votes and zero “no” votes and abstentions, the House of Representatives approved the proposed "Ease of Paying Taxes Act” or House Bill (HB) 4125 on third and final reading.
The measure was approved during the Monday, Sept. 26 plenary session, which Deputy Speaker and Batangas 6th district Rep. Ralph Recto presided over.
Nueva Ecija 1st district Rep. Mikaela Suansing moved to approve the measure on third reading through a nominal vote. This is when the individual votes of the lawmakers are counted.
All in all, it saw 250 yes votes, zero no votes, and zero abstentions.
The approved measure was filed in substitution of HB 53 which was authored by House Ways and Means Chairman and Albay 2nd district Rep. Joey Salceda.
This measure is geared toward modernizing the government’s tax collection, administration, and improving tax compliance.
As per the Committee Report on HB 4125, the measure mandates the "simplified tax returns and processes for smaller taxpayers for ease of compliance to tax rules and regulations; Introduces a medium taxpayer classification and a corresponding Bureau of Internal Revenue (BIR) special unit for better service and tax administration; Enhances the portability of tax transactions by removing restriction of venue in the filing of returns and payment of taxes; Removes the distinction between sales invoice and official receipts and makes the former the document to be used by taxpayers to substantiate value-added tax (VAT) transactions whether for sale of goods or services; Removes the required annual taxpayer registration fee payment worth P500".
Salceda previously estimated that the provisions of the bill could generate an addition P73 billion in revenue over a period of five years.
The approved bill is officially titled “An Act Introducing Administrative Tax Reforms, Amending Sections 21, 22, 51, 56, 58, 77, 81, 90, 91, 103, 106, 108, 109, 110, 112, 113, 114, 115, 116, 128, 200, 236, 237, 245, And 248, And Adding Sections 312 And 313 Of Republic Act No. 8424, Otherwise Known As 'The National Internal Revenue Code Of 1997', As Amended.”