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Pia Cayetano: Law providing 1% preferential tax will ease private schools' woes during pandemic
Pia Cayetano: Law providing 1% preferential tax will ease private schools' woes during pandemic
The enactment of the law granting one percent preferential tax rate to private schools will bring the much needed assistance these institutions deserve as they continue to deliver quality education to Filipino learners, Senator Pia Cayetano said.
Cayetano made the remark following reports of President Duterte signing into law Republic Act No. 11635, which the senator sponsored in the Senate.
The law provides a one percent preferential tax relief to all private schools until June 30, 2023. It primarily seeks to settle the uncertainty in the tax regime for private schools and end the confusion under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.
“Private schools are the government's partners in education. In this time of pandemic, they need as much assistance as they can get to continue delivering quality education to Filipino learners,” said Cayetano, who chairs the Senate Ways and Means Committee.
“Thus, the enactment of Republic Act (RA) 11635 comes as a welcome development for them amid the uncertainties of the times, as rising COVID-19 cases forced us to restrict face-to-face classes to start the New Year,” she added.
The law amends Section 27(B) of the National Internal Revenue Code, to clearly indicate that all proprietary educational institutions, whether for profit or non profit, shall enjoy the 10 percent preferential tax rate.
RA 11635 also allows private schools to be covered by a provision under the CREATE law which reduced the tax rate of such institutions from 10 percent to 1 percent starting July 1, 2020 to June 30, 2023.
The law aims to provide private schools the much-needed reprieve to cope with the continuing challenges caused by the pandemic, starting with their own financial viability and sustainability.
“We need to continue working with our partners in education for long-term solutions in terms of policy and budget, using strategic foresight and futures thinking to help this sector recover from the pandemic, and beyond,” Cayetano said.
“This is part of our country's commitment under Sustainable Development Goal No. 4, which is to ensure inclusive and equitable quality education for all by year 2030,” the lawmaker stressed.