BIR Ruling

July 31, 1975 3rd Indorsement Respectfully returned to the Honorable, Secretary of Finance, Manila, the attached Resolution Nos. 176 and 275, Series of 1974 of the Municipal Board of Cagayan de Oro City and the Provincial Board of Aklan, respectively, endorsing and supporting Resolution No. 111, series of 1974, of the Provincial Board of Nueva Vizcaya requesting the increase in the amount of exemption from the payment of income tax. While the clamour for increased personal and additional exemptions seems to find merit in the light of increasing cost of living, nevertheless, this Office is not inclined to recommend for the present any increase in the amount of statutory exemptions in view of the following reasons: 1. Out of over 4 million income tax filers, only about 600 thousand are filing taxable returns. Any increase in exemptions will further erode the tax base. 2. The income tax is a direct tax. By paying it, the taxpayer establishes his link with the government, and he can rightfully say that he assumes his proper share of the tax burden as a bona fide stockholder of the New Society. To increase the amount of exemptions would be to reduce the number of direct supporters of the government, a result that is not conducive to the promotion of discipline, nationalism and love of country. 3. To give in to the clamour for increased exemptions would set back by decades our tax consciousness campaign, whose main thrust has been to inculcate in the minds of taxpayers the value and significance of taxes to the economy, and the importance of maximum voluntary compliance by taxpayers with their tax obligations. aisa dc (SGD.) CONRADO P. DIAZ Actg . Commissioner of Internal Revenue TAN-1182-568-4