Angara supports tax incentives for schools as costs climb; teachers seek added aid amid inflation

Education Secretary Sonny Angara on Wednesday, April 8, expressed support for maintaining tax incentives for schools and education providers as they grapple with rising operating expenses tied to global economic pressures, including the continuing conflict in the Middle East.

Angara said the incentives are essential in helping schools deal with higher fuel, transportation, and other day-to-day costs that affect their operations. He said the measures are consistent with President Ferdinand Marcos Jr.’s push to shield the education sector from economic instability.

According to Angara, allowing schools to retain more of their limited funds enables them to direct more resources toward instruction and student assistance.

The Department of Education noted that non-stock, non-profit educational institutions continue to enjoy exemption from income tax, provided their revenues are used directly for educational purposes. Proprietary educational institutions, meanwhile, may qualify for a reduced 10% income tax rate if they meet the required conditions.

Angara also underscored that tuition fees and other educational services remain exempt from the 12% value-added tax, a policy intended to prevent additional financial strain on families.

He added that schools are allowed to bring in books and other educational materials without paying taxes and duties, helping institutions soften the impact of rising shipping and logistics costs. He also cited tax credits for schools investing in renewable energy, saying these can help lower expenses over the long term.

Even with these forms of assistance, Angara reminded schools of the need to comply with all regulatory requirements to continue benefiting from the incentives.

At the same time, calls are growing for more direct support for teachers as inflation continues to erode household budgets.

Following the rise in inflation to 4.1% in March, ACT Teachers Party-list Representative Antonio Tinio urged the government to immediately increase the Personnel Economic Relief Allowance (PERA) for educators.

Tinio said many teachers are struggling to keep up with the higher cost of living, worsened by the oil crisis, and argued that adjusting PERA would provide much-needed relief in covering basic goods and services.

He said improving teachers’ financial support should be treated as a priority, especially as inflation places additional pressure on workers already dealing with limited incomes.