Repeal BIR RR No. 5-2021
June 11, 2021CitizenWatch Philippines strongly opposes the insensitive and unwarranted regulation by the Bureau of Internal Revenue (BIR), which not only goes against existing laws but would also add to the hurdles being faced by the private educational sector.
Under a provision of the BIR Revenue Regulation No. 5-2021, income tax on “proprietary” educational institutions would be increased to 25 percent from the current 10 percent. That’s a staggering 150 percent increase!
According to data from the Department of Education, about 900 private schools have been forced to close temporarily, displacing around 4,400 teachers and forcing nearly 500,000 students to transfer to public schools; not taking into account the affected enterprises and livelihoods found on school premises like the maintenance staff, security, cafeteria concessionaires, school bus drivers, and operators.
We call on the national government to repeal BIR RR No. 5-2021. During these trying times, with rising inflation and unemployment rate, we should be focusing on alleviating the economic hardships of the private education sector and not adding on to them by imposing heavier taxes.
The potential repercussions to linked businesses and their consumers will further worsen our economic crisis and will affect the host communities of schools that will be forced to shut down because of this ill-conceived policy.