ACT Teachers Lawmaker Condemns Tax on Interest Income
MANILA, Philippines — The 20 percent tax on interest income has ignited strong criticism from ACT Teachers party-list Representative Antonio Tinio. He called the tax a “predatory scheme” targeting hardworking Filipinos trying to secure their family’s future.
This tax measure, part of Republic Act 12214 or the Capital Market Efficiency Promotion Act, took effect on July 1 and has since stirred public discontent. The exact 20 percent tax on interest income burdens ordinary savers rather than the wealthy, Tinio argued.
“Tax the Billionaires, Not the Poor”
“This is a predatory taxation scheme that punishes working and middle-class Filipinos who are simply trying to save for their families’ future,” Tinio said in a statement. He emphasized that if the government truly wants fairness, it should shift the tax focus to billionaires instead of ordinary citizens.
“If this administration is serious about equity, it should tax the billionaires, not the savings of ordinary citizens. Tax the billionaires, not the poor!” he stressed in his message.
Proposal for Wealth Tax on Billionaires
In response, the ACT Teachers representative plans to propose a bill introducing a 3-percent wealth tax on billionaires. Tinio estimates that this tax could raise at least 98 billion pesos, providing a fairer way to support government programs without overburdening everyday Filipinos.
Local leaders said this move aims to address income inequality and ease the financial strain on the middle and working classes. The current tax on interest income, they argue, discourages saving and disproportionately affects those with modest earnings.
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