Angkla’s anchor in Congress

Amidst the heated debate on the death penalty bill, It’s good to know that some significant legislative work is actually being done in Congress. 

We read that the House of Representatives recently approved House Bill (HB) No. 4814, or the proposed Estate Tax Amnesty Law, on third and final reading. The proposal aims to lower the estate tax from 20 percent to 6 percent.

The House bill was principally authored by Angkla Party-List Rep. Jesulito “Jess” Manalo. It will now be transmitted to the Senate for its consideration.

We were informed that the bill’s counterpart measures in the Senate are still pending for consolidation before the Senate Committee on Ways and Means, chaired by Sen. Juan Edgardo Angara.

With the support of the Department of Finance (DOF) in reducing estate tax, the second-term seafarers’ representative in Congress is optimistic the Senate will also approve his proposal soon.

Manalo’s bill took notice of the progressive rates of estate tax provided under the National Internal Revenue Code of 1997. The current law currently exempts from tax a net estate of up to P200, 000, and levies 5 percent, 8 percent, 11 percent, 15 percent and 20 percent depending on which bracket the property belongs.

Under Manalo’s proposed measure, estate tax will now be fixed at a uniform rate of 6 percent.

According to Manalo, their research has shown that with estate taxes pegged at 20 percent, more than 90 percent of those who inherit pieces of property choose to evade paying taxes by opting not to transfer the property under their names.

Manalo said that his proposal would simplify the transfer of an individual’s property upon his death, by minimizing the tax burdens that the estate is legally bound to pay before it is transferred to the latter’s heirs.

He pointed out that a person works hard for the necessities of his family by putting up a business and invests or saves money in the bank in the hope that when he dies, the people he loved will have enough inheritance and resources not only for their continued sustenance but likewise to enable them to pursue their own professional growth and invest in business.

“Taking these reasons into consideration, a fair rate of estate tax may be imposed by the State, so that the heirs of the decedent may still enjoy a good portion of what they inherited,” Manalo said.

Manalo’s proposal will be a win-win for both the government and the heirs of the owner.

Imagine the amount of money our countrymen would save once this proposal is signed into law.

At present, individuals complain of high transfer taxes on pieces of property they inherit. Because of this and the complexity of the tax structure, many families just deliberately avoid paying the tax or resort to other means to transfer their property under their names.

This will also raise much-needed revenues that our government needs to finance the massive infrastructure projects that the Duterte administration had identified for implementation in the next few years.

We hope families that have inherited property take advantage of this law as soon as it is passed.

Manalo was also the author of Republic Act 10635, which created during the last Congress a single maritime administration and streamlined all government administrative functions for the training and certification of millions of Filipino seafarers registered with the Maritime Industry Authority (Marina).

If we remember right, the “Manalo law” designated Marina as the single central maritime administration responsible for the enforcement of international agreements of covenants governing the country’s global maritime professionals.

It assumed the powers and functions of the Professional Regulations Commission, the Commission on Higher Education, the Technical Education and Skills Development Authority, the Department of Health and the National Telecommunications Commission on the issuance, validation, verification, correction, revocation or cancellation of certificates of competency, proficiency, endorsement and other documentary evidence required of all seafarers.

Before this law was passed, a seafarer had to go through more than 10 government agencies to be able to secure a certification prior to boarding a shipping vessel.

The law also mandated Marina to ensure that the examination, licensing and certification system for marine deck and engine officers are in accordance with the requirements prescribed under the 1978 International Convention on Standards of Certification, Training and Watchkeeping for Seafarers (SCTW).

This is welcome news, indeed.

This only goes to show that our legislators can do their jobs well if only they set their minds to passing relevant laws. It is also one clear prototype of how party-list lawmakers can effectively push the interests of the marginalized sector that they represent.

With this outstanding feat of shepherding two major legislative proposals in the labyrinth of the House, Manalo has proven to be a competent lawmaker.

He provides the best argument that somewhere, somehow, there are men and women in the government who can justify the billions of pesos in taxpayers money that are spent on them every year.