Repeal the Onerous Tax Provision on Private Schools
June 26, 2021The Bureau of Internal Revenue (BIR) released last June 11 what many thought would be a rectification of BIR Revenue Regulation No. 5-2021 that imposes an onerous 150% percent increase in tax on private schools instead of the regular 10 percent. Instead, what was released was merely a clarification on corporate tax computation.
Despite the persistent protest and appeals of the private educational sector, the BIR is still standing by its own interpretation of the law that will slap a ridiculous 150 percent increase in the tax on private schools.
Why place a heavier burden on the struggling private education system especially at this time of crisis? Some 900 private schools had no other option but to close down, and dropouts had reached approximately 900,000 in private basic education due to the economic repercussions of COVID-19.
The government and other key stakeholders must collaborate and come up with long-term policies and strategies to help address our ongoing learning crisis. We must explore forward moving interventions and strategies on how to sustain and strengthen this strategically important sector.
CitizenWatch Philippines joins the call of the private educational institutions for the government to act with urgency and correct this damaging provision of BIR RR No. 5-2021. What we need are measures that will nurture an accessible educational system with competitive global standards. Policies should focus on making life easier for our citizenry and not adding to the economic hardships they are already facing.