PRRD’s idea of gross taxation jibes with Tet’s


After three years since he passed away, former Governor and Congressman Enrique “Tet” Garcia, Jr.’s noble idea on taxation lives on, and it was also in the mind of President Rodrigo Roa Duterte as if they talked about it much earlier.

During his visit to Bataan last September 12 to lead the inauguration of the Bunker, the new provincial capitol building, President Duterte broached the matter of gross income taxation on businesses to curb corruption..
He said the system would significantly reduce corruption starting in the Bureau of Internal Revenue. (BIR). “Pag gross wala na gagawin ang mga BIR examiner,” Duterte explained.

Gross income tax is tax assessed on one’s earning from an employment. Net taxes, on the other hand, are levied on production less subsidies received.
“I guarantee you, pag pumunta tayo sa gross, wala nang examiner, wala nang deduction on them, they do not haggle for anything,” said the President.
In 1988, then Congressman Tet Garcia rejected the implementation of value-added tax scheme saying that VAT further expands the venue for corruption and tax evasion. Garcia then said a manufacturer can easily cheat by fabricating spurious purchase invoices to increase (his) tax credit, thus reducing his tax accountability to the government.

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