'Dagdag Gastos Calculator' Reveals Added Expenses Under Tax Reform



Press Release, Computer Professionals’ Union

June 5, 2017


IT group Computer Professionals’ Union just released a modified tax calculator based (http://dagdaggastoscalc.cp-union.com/) on the Department of Finance (DOF) online tool[i] to compute expected increases in household expenditures under House Bill 5636 or the Tax Reform Bill recently approved by the House of Representatives.


Called the Dagdag Gastos Calculator, the tool was  modelled after the DOF Tax Calculator but with a twist – after a user inputs his/her marital status, employer type, monthly salary, and number of dependents, it also asks for a user’s monthly expenditures on rent (if their house is rented), food and groceries, and utilities. The end results show not just changes in income tax, but also estimated hikes in monthly household expenses under the tax reform measure based on a study published by Bayan Muna partylist[ii].


“With the generous help of our volunteers, we created this initiative so that people can easily see the possible impact of the Tax Reform Law on the prices of commodities,” said Mac Yanto, deputy national coordinator of CPU. “At first glance, and with use of the DOF Tax Calculator alone, it may appear that the proposed tax measures will be beneficial to all, however we saw the need to show how it will impact the day to day expenses of all Filipinos.”


Initial simulations from the Dagdag Gastos Calculator confirm earlier studies released by Bayan Muna and Ibon Foundation[iii] that the proposed tax measures will hit the unemployed, underemployed, and below minimum wage earners the hardest. Ibon Foundation estimates that there are some 24.4 million Filipino workers in low-paying and insecure work, in addition to the 11.5 million Filipinos without work or still looking for more work, and some 1.3 million Filipinos who have dropped out of the labor force [iv]. This translates to some 37.2 million Filipinos and their families who will bear the brunt of the additional tax burden.


“We hope that with the Dagdag Gastos Calculator, more Filipinos will see that the promised relief offered by the tax reform is effectively narrowed down by DOF’s insistence on value-added tax (VAT) and excise taxes that impacts everyone regardless of income. Ultimately, more Filipino families will have to shoulder added expenses to their already gravely inadequate incomes,” said Yanto. “In this sense we support the call for a more progressive tax system that collects based on a citizen’s capacity to pay instead of insisting on an expanded tax base  of blanket tax coverages for everyone, including the poor,” ended Yanto.


The Dagdag Gastos Calculator can be found at http://dagdaggastoscalc.cp-union.com



Mac Yanto, Deputy National Chairperson




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