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[av_heading heading=’House panel OKs planned tax reforms’ tag=’h3′ style=’blockquote modern-quote’ size=” subheading_active=’subheading_below’ subheading_size=’15’ padding=’10’ color=” custom_font=”]
BY ADRIAN STEWART CO
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Friday, May 5, 2017
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MANILA – The House of the Representatives ways and means committee approved the first batch of the Duterte administration’s Comprehensive Tax Reform Program (CTRP).
Lawmakers voted on Wednesday evening in favor of lowering personal income tax and reducing value-added tax (VAT) exemptions to cut revenue losses, among other proposals of the Department of Finance.
The controversial tax reform package — which got 17 affirmative votes, four dissenting votes and three abstentions — will be up for second reading at the House plenary.
Committee chair Dakila Cua of Quirino, who led the marathon hearings, said the main features — which also included new or higher excise taxes on fuel, expanded VAT coverage and higher excise tax on automobiles — remained intact.
Under the proposed tax package, the maximum personal income tax will be reduced to 25 percent from 32 percent, except for high income earners.
Those earning P250,000 or below annually will be exempted from paying income taxes.
The 13th month pay up to P82,000 and other bonuses will remain tax-free, while the “ultra-rich,” who comprise 0.1 percent of taxpayers, will be levied a higher rate of 35 percent, up from the current 32 percent.
The measure has also proposed increased excise taxes on refined petroleum and automobiles, with the exception of buses, trucks, cargo vans, jeeps, jeepney substitutes, and special purpose vehicles./PN
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