Private school associations lauded members of the Senate for “swiftly and favorably acting” to pass a bill on second reading that will prevent the collapse of propriety educational institutions in the face of a massive increase in tax rates amid the global health and economic crisis.
Dr. Anthony Tamayo, chairman of Coordinating Council of Private Educational Associations (Cocopea) and president of Philippine Association of Colleges and Universities (PACU), said that with the approval by the Senate, SB 2407 moved a step closer to its enactment into a law. He said this would greatly help the private education sector together with its stakeholders.
“We need this more than ever. With our enrollment numbers that continue to go down because of the pandemic, this economic and policy intervention from our senators empowers and uplifts our institutions in taking on the challenges in education, particularly the current learning crisis of our students; preparations for reopening of schools to in-person classes; and the need to continuously strengthen our country’s human capital development in response to the fast-evolving digital economy,” Tamayo said. He said that with just a few days left before the session breaks in October for the filing of candidacies for the 2022 national elections, “we pray that SB 2407 be passed into law as soon as possible.”
“We express our profound gratitude to the Senate for swiftly and favorably acting on Senate Bill 2407 entitled, ‘An Act Clarifying the Income Taxation of Proprietary Educational Institutions, Amending for the Purpose Section 27 of the National Internal Revenue Code of 1997, As Amended,’ especially to Senate President Vicente Sotto III, Senate Committee on Ways and Means Chairperson Sen. Pia Cayetano and the primary author of SB 2407, Sen. Juan Edgardo Angara,” the associations said in a joint statement stressing that the proposed amendment will make private schools qualified for a concessionary tax rate of 1 percent under the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE Act), instead of the 150-percent increase imposed by a recent regulation by the Bureau of Internal Revenue.
Tamayo said that upon hearing the “impassioned” sponsorship speeches for SB 2407 of Sen. Joel Villanueva, Sen. Ralph Recto, Sen. Juan Miguel Zubiri, “we are reassured that our legislature will not turn its back on private education in ensuring it gets the rightful share in the recovery and assistance measures that it grants to various sectors through the enactment of the CREATE Act.” The associations also thanked Senators Sherwin Gatchalian, Risa Hontiveros, Francis Pangilinan, Francis Tolentino and Christopher Lawrence “Bong” Go for manifesting their desire to be made co-sponsors of SB 2407.
“Indeed, Minority Floor Leader Sen. Frank Drilon has aptly described the overwhelming support on the passage of the clarificatory bill as bipartisan and an issue that crosses party lines for the sake of public interest. Education, as a public good, certainly deserves such significance and priority being given by our honorable senators. This was highlighted by Senate’s immediate termination of the period of interpellation to substantially save time and expedite Senate approval of the measure,” Tamayo added.
He said that the millions of stakeholders of the private education sector and the linked ecosystem that depend on the continuity of our schools, would be deeply grateful to the Senate for its swift and conclusive correction of BIR Revenue Regulation 5—2021’s erroneous interpretation of the CREATE Act, which the “Senate and the House clearly intended to provide a relief, not a burden, to the private education sector as partner of government, amidst the devastating pandemic.”
The associations said the educational institutions need a stable and enabling policy foundation to continuously produce the manpower with skills that are responsive to a fast-evolving digital economy.
Signatories in the statement include the Cocopea, which represents over 2,500 private educational institutions with over 300,000 school personnel; Davao Colleges and Universities Network; Association of Private, State Colleges, and Universities in Region 11; Bicol Association of Private Colleges and Universities; and CESAFI Association of Cebu Private Schools. Senate Bill 2407 seeks to amend Section 27 of the National Internal Revenue Code (NIRC) of 1997 to rectify with finality the flawed interpretation of a provision under the CREATE Act by the BIR’s Revenue Regulation 5-2021 which imposes a 150-percent increase in taxes on private schools.
Read full article on BusinessMirror
