Wednesday, August 8, 2018

TRAIN 2 to Impose Tax on Schools, Hospital Operated by Religious Organizations

It seems that the happy days for the religious organizations that profiting too much in their schools and hospitals are nearly over.

According to the Department of Finance (DOF) Undersecretary Karl Chua, the proposed Tax Reform for Acceleration and Inclusion (TRAIN) 2 bill seeks to impose a graduated tax on hospitals and schools owned by religious organizations like the Catholic Church.

Chua said that the current laws state that the schools being operated by religious groups do not pay taxes even though they’re charging high amount of fees to their students.

Senator Tito Sotto III already filed the bill in the Senate, and it needed to pass the debate about the pros and cons of the proposal.

Chua said that the objective of TRAIN2 is to ensure that every Filipino students entering schools are given quality education.

According to him, out of 20,000 schools in the Philippines, 10,000 of it are owned by religious groups which do not pay taxes to the government.

Schools being owned by religious organizations have been criticized for imposing a high amount of fees to their students, but they’re not paying taxes to the government.

Former House Speaker Pantaleon Alvarez also pushed for removing the tax-free law on schools and businesses owned by religious groups.

“Most of these schools, the ones run by religious sectors, do not really serve the poor because only the rich can afford it. Their tuition fees (sic) are so expensive.” Alvarez said in April.

“We can’t say that they are not profiting because as you can see, their schools are huge and they are even expanding but these schools are not really for the poor. The poor can’t study in these schools, everything is expensive there,” he added.

Source: Manila Bulletin

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