Saturday, June 3, 2023
manilastandard.net
ADVERTISEMENT
  • About
  • News
    • Top Stories
    • National
    • World News
    • Pinoy Abroad
    • Features
  • Opinion
    • Editorial
    • Columns
    • Soundbytes
  • LGUs
    • NCR
    • Luzon
    • Visayas
    • Mindanao
  • Business
    • Corporate
    • Economy & Trade
    • Stocks
    • Money
    • Agri & Mining
    • Power & Tech
    • IT & Telecom
  • Sports
    • Basketball
    • Volleyball
    • Fightsports
    • Active
    • Sports Plus
    • One Championship
    • Columns
  • Entertainment
    • TV & Movies
    • Celebrity Profiles
    • Music & Concerts
    • Digital Media
    • Columns
  • Lifestyle
    • Food
    • Culture & Media
    • Fashion
    • Health and Home
    • Leisure
    • Shopping
    • Columns
  • Others
    • Pets
    • Pop.Life
      • Newsmakers
      • Hangouts
      • A-Pop
      • Post Its
      • Performances
      • Malls & Bazaars
      • Hobbies & Collections
    • Technology
      • Gadgets
      • Computers
      • Business
      • Tech Plus
    • MS ON THE ROAD
      • Sedan
      • SUV
      • Truck
      • Bike
      • Accessories
      • Motoring Plus
      • Commuter’s Corner
    • Home & Design
      • Residential
      • Commercial
      • Construction
      • Interior
    • Spotlight
    • Gallery
      • Photos
      • Videos
    • Events
      • Seminars
      • Exhibits
      • Community
    • Biyahero
      • Travel Features
      • Travel Reels
      • Travel Logs
  • Advertise with Us
No Result
View All Result
  • About
  • News
    • Top Stories
    • National
    • World News
    • Pinoy Abroad
    • Features
  • Opinion
    • Editorial
    • Columns
    • Soundbytes
  • LGUs
    • NCR
    • Luzon
    • Visayas
    • Mindanao
  • Business
    • Corporate
    • Economy & Trade
    • Stocks
    • Money
    • Agri & Mining
    • Power & Tech
    • IT & Telecom
  • Sports
    • Basketball
    • Volleyball
    • Fightsports
    • Active
    • Sports Plus
    • One Championship
    • Columns
  • Entertainment
    • TV & Movies
    • Celebrity Profiles
    • Music & Concerts
    • Digital Media
    • Columns
  • Lifestyle
    • Food
    • Culture & Media
    • Fashion
    • Health and Home
    • Leisure
    • Shopping
    • Columns
  • Others
    • Pets
    • Pop.Life
      • Newsmakers
      • Hangouts
      • A-Pop
      • Post Its
      • Performances
      • Malls & Bazaars
      • Hobbies & Collections
    • Technology
      • Gadgets
      • Computers
      • Business
      • Tech Plus
    • MS ON THE ROAD
      • Sedan
      • SUV
      • Truck
      • Bike
      • Accessories
      • Motoring Plus
      • Commuter’s Corner
    • Home & Design
      • Residential
      • Commercial
      • Construction
      • Interior
    • Spotlight
    • Gallery
      • Photos
      • Videos
    • Events
      • Seminars
      • Exhibits
      • Community
    • Biyahero
      • Travel Features
      • Travel Reels
      • Travel Logs
  • Advertise with Us
No Result
View All Result
manilastandard.net
No Result
View All Result
Home Opinion Columns Open Thoughts by Orlando Oxales

A tax policy threat to the private educational ecosystem

Orlando OxalesbyOrlando Oxales
May 31, 2021, 12:10 am
in Open Thoughts by Orlando Oxales
Reading Time: 3 mins read
A A
Share on FacebookShare on TwitterShare on Email

"This will cause long-term damage to our educational system."

 

The private education sector has been hit hard by this health crisis. October 2020 data from the Department of Education (DepED) counted 860 K-12 private schools that suspended operations, affecting approximately 60,000 students and 4,500 teachers. The majority of these schools that closed down cited “no or low enrollment” while others could not quickly shift to digital modes of education and comply with DepED’s distance learning requirements.

A recent survey conducted in April 2021 by the Philippine Association of Colleges and Universities (PACU) revealed that 50 percent of the respondents suffered a 10-to-50-percent decline in enrollment compared to the previous year. PACU estimates that over a million of their direct stakeholders, teachers, students, and school personnel have been affected by the combined effects of the pandemic.

A big shocker was when the over-a-century old institution of the College of the Holy Spirit of Manila (CHSM) announced that it will close down at the end of 2021-2022 school year. In a letter by CHSM provincial leader Sr. Carmelita Victoria quoted in news reports said, “The recent COVID-19 pandemic has exacerbated the situation. The reduction or loss in family income, mobility restrictions and social distancing requirements, and the new demands of distance learning have adversely affected enrolment, not only in CHSM but in most private schools as well.”

Unlike government-subsidized public schools, private schools must be financially viable not just to sustain operations but to continuously invest in its facilities, teaching technologies, and most importantly, their faculty. You can imagine the complexity of running an operation that must support an army of teachers and ensure that their population of learners in each academic program receives the best training possible.

However, there is an even more serious crisis that will further exacerbate the already precarious situation of private schools because of two words in a provision in Revenue Regulation (RR 5-2021) signed by Finance Secretary Carlos G. Dominguez on April 7, 2021. The problematic provision contradicts the preferential tax rate of 1 percent for proprietary educational institutions (private schools) under the Tax Code as amended by the CREATE Law.

To put it simply, this new requirement in RR 5-2021 is denying private schools the preferential tax treatment mandated in the Constitution and, if implemented, will impose a 25% corporate income tax on private education institutions. This apparent insertion goes against what President Duterte and Congress actually intended in the CREATE Law which rightly provides much-needed relief to the distressed private schools by a temporary reduction of the 10-percent tax rate that has been in effect since 1968, to 1 percent during the pandemic. If this is not quickly remedied, this will be a policy blunder that more than doubles the tax rate of private schools from 10 percent to 25 percent!

This will cause long-term damage to our educational system. Millions of direct and indirect stakeholders of private schools that will be forced to close because of this mistake will be affected. More jobs will be lost, the livelihood of tens of thousands of families will be gone, a preventable situation that the country does not need especially at this time.

We know how our educational system boosts economic activity through jobs, supporting allied industries, and many small and medium enterprises in its community. Before COVID-19 and despite policy challenges, the private education system was a thriving ecosystem that has been the dominant producer of the country’s professionals, managers, and technicians which according to latest PACU data is 74.9 percent compared to 25.1 percent from the State Universities and Colleges (SUCs). This translates to more than 3.5 million from the private higher education institutions (HEIs) and about 1.8 million from SUCs. This clearly illustrates the critical role of private schools in training the skilled workforce that we need for economic growth.

According to higher education data from the Commission on Higher Education, private colleges and universities produced 402,437 graduates in academic year 2019-2020, higher than the 394,139 from SUCs. From 2010-2020, approximately 3.7 million from all disciplines graduated from private schools accounting for about 50 percent of the Philippine education system’s output.

Private schools have always been widely perceived as the better choice for quality education which comes with a prestige factor associated with private school institutions. Assuming that a student will perform well, this is considered by many as an advantage for higher studies and employment. The contributions and critical role of private educational institutions in developing our human resources and economic growth is indisputable.

At this time of economic hardship and with elections coming next year, the government must act fast on this very fixable revenue provision in RR 5-2021 before it explodes into yet another crisis that may have political repercussions for this administration.

Tags: Commission on Higher EducationCREATE LawDepartment of EducationK-12Philippine Association of Colleges and Universities
ADVERTISEMENT
Orlando Oxales

Orlando Oxales

Related Posts

The Cervical Cancer Elimination Movement

byOrlando Oxales
May 29, 2023, 12:05 am
0
8
Denying Villafuerte justice

The key message of this advocacy is that no one has to die of cervical cancer for the simple reason...

Read more

Connectivity metrics for all public and private establishments

byOrlando Oxales
May 22, 2023, 12:10 am
0
8
Denying Villafuerte justice

This means everybody inside an institution’s area of operations will have quality broadband access to all digital services they need...

Read more

Paleng-QR PH Plus is a grassroots enabler

byOrlando Oxales
May 15, 2023, 12:05 am
0
8
Denying Villafuerte justice

All local government leaders should help enable their constituents…by working with the BSP in rolling out the Paleng-QR PH Plus...

Read more

Deepening US-Philippine alliance

byOrlando Oxales
May 8, 2023, 12:05 am
0
8
Denying Villafuerte justice

"It will be interesting how negotiations on the US-Philippine civil nuclear cooperation agreement will move forward" United States President Joe...

Read more

High time to push back

byOrlando Oxales
May 1, 2023, 12:00 am
0
8
Denying Villafuerte justice

It is expected that President Biden will reaffirm US commitment to the defense of the Philippines “The Philippines might be...

Read more

ADR’s legacy of excellence, courage, and honor

byOrlando Oxales
April 24, 2023, 12:05 am
0
8
Denying Villafuerte justice

We must sustain Ambassador Albert del Rosario’s mission to safeguard our national security amidst the current challenges in the Indo-Pacific...

Read more

Print Edition

View More

Recent Posts

  • Angkas reaffirms commitment to commuter safety with 24/7 emergency accident fund
  • Experts warn bird flu virus changing rapidly in largest ever outbreak
  • Erdogan to be sworn in for third term as Turkish president
  • Chile says recent mass seabird death not due to avian flu
  • US says talks with China ‘essential’ to curb chance of conflict
  • One dead, two missing in Japan after heavy rain
  • Trump, rivals asked for loyalty pledge ahead of 2024 debates
  • Colombia president’s allies exit over nanny wiretap scandal

Advertisement

Latest News

One dead, two missing in Japan after heavy rain

byAFP
June 3, 2023, 10:30 am
0
8
One dead, two missing in Japan after heavy rain

Heavy rain across parts of Japan has killed one person and left two missing, authorities said Saturday, with thousands issued...

Read more

Trump, rivals asked for loyalty pledge ahead of 2024 debates

byAFP
June 3, 2023, 10:00 am
0
8
Trump, rivals asked for loyalty pledge ahead of 2024 debates

The Republican Party is planning to hold its first US presidential primary debate on August 23, organizers said Friday, announcing...

Read more

Colombia president’s allies exit over nanny wiretap scandal

byAFP
June 3, 2023, 9:30 am
0
8
Colombia president’s allies exit over nanny wiretap scandal

Two close allies of Colombian President Gustavo Petro stepped down Friday after prosecutors announced the pair would be called to...

Read more

Djokovic blasts ‘disrespectful’ French Open fans

byAFP
June 3, 2023, 8:30 am
0
8
Djokovic returns to Monte Carlo as Alcaraz waits to pounce

Novak Djokovic blasted French Open fans as "disrespectful" after he defeated Alejandro Davidovich Fokina in a tense third round clash...

Read more

Ecuador’s president says won’t seek reelection in snap vote

byAFP
June 3, 2023, 8:00 am
0
8
Ecuador to cut fuel prices that sparked demonstrations

Ecuador's President Guillermo Lasso said Friday he would not seek another term in snap elections called for August after he...

Read more

Advertisement

ADVERTISEMENT
Facebook Twitter Instagram Youtube

ABOUT US

Manila Standard

Manila Standard website (manilastandard.net), launched in August 2002, extends the newspaper’s reach beyond its traditional readers and makes its brand of Philippine news and opinion available to a much wider and geographically diverse readership here and overseas.

Digital Edition

In tone and content, the online edition mirrors the editorial thrust of the newspaper. While hewing to the traditional precepts of fairness and objectivity, MS believes the news of the day need not be staid, overly long or dry. Stories are succinct, readable and written in a lively style that has become a hallmark of the newspaper.

Download – Today’s Paper

Search

No Result
View All Result

6th Floor Universal Re Bldg., 106 Paseo De Roxas cor. Perea Street, Legaspi Village, 1226 Makati City Philippines

Trunklines: 832-5554, 832-5556, 832-5558

© 2021 Manila Standard - Designed and Developed by Neitiviti Studios.

No Result
View All Result
  • About
  • News
    • Top Stories
    • National
    • World News
    • Pinoy Abroad
    • Features
  • Opinion
    • Editorial
    • Columns
    • Soundbytes
  • LGUs
    • NCR
    • Luzon
    • Visayas
    • Mindanao
  • Business
    • Corporate
    • Economy & Trade
    • Stocks
    • Money
    • Agri & Mining
    • Power & Tech
    • IT & Telecom
  • Sports
    • Basketball
    • Volleyball
    • Fightsports
    • Active
    • Sports Plus
    • One Championship
    • Columns
  • Entertainment
    • TV & Movies
    • Celebrity Profiles
    • Music & Concerts
    • Digital Media
    • Columns
  • Lifestyle
    • Food
    • Culture & Media
    • Fashion
    • Health and Home
    • Leisure
    • Shopping
    • Columns
  • Pop.Life
    • Newsmakers
    • Hangouts
    • A-Pop
    • Post Its
    • Performances
    • Malls & Bazaars
    • Hobbies & Collections
  • Technology
    • Gadgets
    • Computers
    • Business
    • Tech Plus
  • MS ON THE ROAD
    • Sedan
    • SUV
    • Truck
    • Bike
    • Accessories
    • Motoring Plus
    • Commuter’s Corner
  • Home & Design
    • Residential
    • Commercial
    • Construction
    • Interior
  • Spotlight
  • Gallery
    • Photos
    • Videos
  • Events
    • Seminars
    • Exhibits
    • Community
  • Biyahero
    • Travel Features
    • Travel Reels
    • Travel Logs
  • Pets
  • Advertise with Us

© 2021 Manila Standard - Designed and Developed by Neitiviti Studios.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Install Manila Standard Web App

Install App