Angara backs tax breaks for schools

Education Secretary Sonny Angara on Wednesday threw his support behind continuing tax incentives for schools and education providers to help them navigate rising operational costs fueled by the conflict in the Middle East.

Angara said the measures are vital for institutions struggling with the financial strain of increased fuel, transport, and logistics expenses.

“Aligned with President Bongbong Marcos’ goal of protecting education from economic volatility, these incentives allow schools to maximize limited resources and free up funds for teaching and learner support,” Angara said.

The Department of Education cited that non-stock, non-profit educational institutions remain exempt from income tax on revenues used for educational purposes. Additionally, proprietary schools may qualify for a preferential income tax rate of 10 percent under specific conditions.

To shield families from rising prices, Angara cited that tuition and educational services are exempt from the 12 percent value-added tax. Schools also retain the ability to import books and materials duty-free, a measure intended to offset surging international shipping costs.

Angara also highlighted tax credits for schools investing in renewable energy as a strategy to lower long-term utility expenses, though he stressed that institutions must strictly adhere to regulatory requirements to maintain these benefits.

The push for institutional relief comes as the ACT Teachers Partylist calls for direct financial support for educators. Following a jump in the national inflation rate to 4.1 percent in March, Representative Antonio Tinio urged the government to approve an immediate increase in the Personnel Economic Relief Allowance (PERA).

Tinio said the rising cost of living, driven largely by the global oil crisis, has made it difficult for teachers to afford basic necessities.

“The government needs to prioritize the welfare of teachers, who are already facing financial challenges due to the inflationary pressures,” Tinio said, adding that a PERA adjustment is a crucial step in managing the current economic climate.