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BIR will Collect More Professionals, Self Employed, Lawyers, Doctors Income Tax, Minimum of 100,000 Pesos.

The government will target the country’s 1.7 million professionals - self employed , lawyers and doctors. in Bureau of Internal Revenue (BIR) tax examination and revenue generation campaign next year, Finance Secretary Cesar Purisima said yesterday.

President Aquino administration is striving to raise revenue to reduce its budget deficit without imposing new taxes. This will only be possible through proper implementation of the current taxes.

Finance Secretary Cesar Purisima told the House appropriations committee that the Bureau of Internal Revenue (BIR) would make professionals - self-employed, lawyers and doctors individuals pay more income tax.

In President Aquino State of the Nation Address (SONA) - professionals pay less taxes than ordinary workers. Employees receives their salaries net of all taxes and mandatory contributions – SSS, Philhealth and Pagibig.

“According to the BIR, we have around 1.7 million self-employed and professional taxpayers: lawyers, doctors, businessmen who paid a total of P9.8 billion in 2010. This means that each of them paid only an average of P5,783 in income tax. They each must have earned only P8,500 a month, which is below the minimum wage. I find this hard to believe,” - Finance Secretary Cesar Purisima

Finance Secretary Cesar Purisima said the BIR hopes to collect a minimum of P100,000 in income tax from professionals next year.

Finance Secretary Cesar Purisima said the P100,000 average income tax goal from professionals is even a conservative target.

Budget documents provided to the House appropriations committee show that last year, salaried workers contributed more than P100 billion in income taxes to the national treasury. Employees receives their salaries net of all taxes and mandatory contributions – SSS, Philhealth and Pagibig and the taxes are monthly paid by the employers on or before the 10th of the succeeding month.

President Aquino administration has said it first wants to fix tax leaks before implementing new taxes. This is the most effective and efficient way to increase tax collection on professionals, self employed, lawyers, doctors, businessmen.

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