The country’s largest associations of private schools have welcomed the Senate’s approval on third and final reading of Senate Bill No. 2407, which aims to save the educational sector and its allied industries from collapse.
“We reiterate our profound gratitude to the Senate for swiftly and unanimously approving on third and final reading Senate Bill 2407,” the educational groups said in a joint statement.
The measure is entitled “An Act Clarifying the Income Taxation of Proprietary Educational Institutions, amending for the purpose Section 27 (B) of the National Internal Revenue Code of 1997, as amended.”
The school groups thanked Senate President Vicente Sotto III, Senate Committee on Ways and Means Chairman Sen. Pia Cayetano and the primary author of SB 2407, Sen. Juan Edgardo Angara.
The groups include the Coordinating Council of Private Educational Associations (COCOPEA), which represents over 2,500 private educational institutions with over 300,000 school personnel; Davao Colleges and Universities Network (DACUN); Association of Private, State Colleges and Universities in Region XI (APSCUR XI); Bicol Association of Private Colleges and Universities (BAPCU); CESAFI Association of Cebu Private Schools.
“With this approval, we look forward to the convening of the bicameral conference committee to reconcile the versions of the two Houses of Congress,” said Dr. Anthony Jose M. Tamayo, chairman of COCOPEA.
“We are confident that owing to the solidarity of intent and objective of both Houses in strengthening the complementary role of private education in our country, the bicam members would be able to swiftly come to an agreement to an enrolled bill to be signed by the President as soon as possible,” Tamayo added.
The House of Representatives earlier approved House Bill No. 9913, with 203 votes and no objections or abstentions to secure with finality the grant of preferential tax rate of 10 percent for proprietary schools, including the temporarily lowered rate of 1 percent during the pandemic, under the CREATE Act.
The House bill was introduced by Rep. Joey S. Salceda and co-authored by Deputy Speaker Cong. Rufus Rodriguez, Representatives Kiko Benitez, Mark O. Go, Luis Villafuerte, Joy Tambunting and 68 other members of the House.
Tamayo, who is also the president of Philippine Association of Colleges and Universities (PACU), said that with just a few days left before the congressional session breaks in October for the filing of candidacies for the 2022 national elections, “we pray that the bill be passed into law as soon as possible.”
“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 our senators and congressmen who tirelessly worked in passing this landmark legislation,” said Tamayo.
The proposed measure 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.
SB 2407 seeks to amend Section 27(B) of the National Internal Revenue Code (NIRC) of 1997 to rectify with finality the flawed interpretation of a provision under the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE Act) by the BIR’s Revenue Regulation 5-2021 which imposes a 150-percent increase in taxes on private schools.
The private schools thanked all sponsors of SB 2407, including Senators Joel Villanueva, Ralph Recto, Juan Miguel Zubiri, Sherwin Gatchalian, Risa Hontiveros, Francis Pangilinan, Grace Poe, Nancy Binay, Richard Gordon, Leila de Lima, Francis Tolentino, Imee Marcos, Cynthia Villar, Manny Pacquiao, Bong Revilla, Bong Go, Ping Lacson, Ronald dela Rosa and Lito Lapid.
“The wealth of discussions by our distinguished senators in the deliberation of this bill would certainly be a rich source of the true legislative intent in further guiding implementors and taxpayers moving forward,” the groups said.
Tamayo said Minority Floor Leader Sen. Frank Drilon 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 approval of the bill,” he said.
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.