Poor tax-income ratio. That's how the Bureau of International Revenue (BIR) shows the writing on the wall. And why is that RP has poor tax collection?

Based on the 2003 Family Income & Expenditures Survey (FIES), no group of workers paid more than 5% of their income in taxes, with the tax-income ratio ranging from 0.7% among farmers, forestry workers and fisherman to 4.3% among professionals. And officials of government and special-interest organizations, corporate executives, etc. pay equivalent to 2.5% of their total income.

Currently, it shows that the tax effort-ratio or the tax percentage in GDP is 14.3%, very low compared to other countries in SE Asia and that the government accumulated a P9.4 billion difficit.

Corporate income tax evasion has been estimated at 38% or P54.1 billion annually, and those by professional and businessman at 69% or P26.7 billion annually.

The writing on the wall is plain to see, with the rice-price crisis and the unrelenting surge in oil prices pose big threats to the government's drive toward efficient tax collection.

Obviously, many Filipinos are not paying enough taxes. Gone are the days when a Filipino pays honestly and with sense of responsibility to pay taxes at the proper time and with correct amount.

But why is such a poor revenue collections? Why this so-called religious country in the world is not religiously paying taxes?

Let me explain you probable reason behind which i personally believe without discussing the rampant government corruption that might shun a filipino away into paying taxes.

The FIES  lately shows how income levels continue to fall amid rising expenditures among filipino families, indicating how poor becoming poorer. Thus, taxes imposed cast a heavier burden on ordinary workers and employees, and who among the ordinary, especially individual paying  members  would dare to prioritize BIR than their daily food in the table.

How can an ordinary worker be stimulated to pay correct amount of taxes, settle unpaid obligations even at great discounts unless the government grant full amnesty on delinquency or unless the government lowers income taxes from wage and salary workers, and the government provides them with more disposable income.

<u> Table Below Shows Philippines' Tax Rate</u> , by BIR

For Individuals Earning Purely Compensation Income and Individuals Engaged in Business and Practice of Profession

Note: Effective January 1, 1999, the maximum rate shall be thirty-three percent (33%) and thirty-two percent (32%) on January 1, 2000.

Note: When the tax due exceeds P2,000.00, the taxpayer may elect to pay in two equal installments, the first installment to be paid at the time the return is filed and the second installment on or before July 15 of the same year at the Authorized Agent Bank (AAB) within the jurisdiction of the Revenue District Office (RDO) where the taxpayer is registered.

*Beginning on the 4th year immediately following the year in which such corporation commenced its business operations, when the minimum corporate income tax is greater than the tax computed using the normal income tax.

Note: Effective January 1, 1999, the maximum rate shall be thirty-three percent (33%) and thirty-two percent (32%) on January 1, 2000.

B. For Non-Resident Aliens Engaged in Trade or Business

*Cash and/or Property Dividends, Share in the distributable net income of the partnership, Interest on any bank deposits, Royalties (except on books as well as literary works and musical composition), Prizes (except prizes amounting to P10,000 or less), Winnings