Education Secretary Sonny Angara on Wednesday, 8 April, backed the continuation of tax incentives aimed at helping schools and education providers cope with rising operational costs, which have been exacerbated by the ongoing Middle East conflict.
Angara noted that these measures are critical for schools to manage the financial strain caused by rising fuel, transport, and other operational 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 (DepEd) pointed out that non-stock, non-profit educational institutions remain exempt from income tax on revenues as long as those funds are used for educational purposes.
Proprietary schools are also allowed to benefit from a preferential income tax rate of 10%, provided certain conditions are met.
To ease the burden on families, Angara also highlighted that tuition and educational services remain exempt from the 12% value-added tax (VAT).
Additionally, schools can import books and educational materials without facing taxes and duties, helping to offset rising shipping and logistics costs.
The Education Secretary also discussed the role of tax credits for schools investing in renewable energy, saying that this helps reduce long-term operational costs.
While the incentives provide much-needed relief, Angara emphasized the importance of adhering to regulatory requirements.
Meanwhile, as inflation continues to rise, the ACT Teachers Party-list is calling for urgent financial support for the country’s educators.
In response to the jump in inflation to 4.1% in March, ACT Teachers Representative Antonio Tinio urged the government to approve an immediate increase in the Personnel Economic Relief Allowance (PERA) for teachers.
Tinio pointed out that the increase in the cost of living, driven by the ongoing oil crisis, has made it increasingly difficult for teachers to meet their basic needs.
He stressed that the PERA adjustment would be crucial in helping teachers manage the rising costs of everyday goods and services.
“The government needs to prioritize the welfare of teachers, who are already facing financial challenges due to the inflationary pressures,” Tinio said.
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