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BY ADRIAN STEWART CO
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Friday, June 2, 2017
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MANILA – The House of Representatives approved on third and final reading the Comprehensive Tax Reform Program (CTRP) of the Duterte administration.
In a 246-9-1 voting on Wednesday evening, the lawmakers passed the program, proposed by the Department of Finance, that lowers personal income tax and reduces value-added tax (VAT) exemptions to cut revenue loss.
Rep. Edcel Lagman (Albay, 1st District) was the lone abstention. Among those who voted against the measure were lawmakers from the Makabayan bloc, who said it will aggravate the condition of the poor.
Under the CTRP, the maximum rate of personal income tax will be reduced starting Jan. 1, 2018 to 25 percent from the current 32 percent, except for high income earners. Those earning P250,000 and 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 from the current 32 percent.
The measure also proposed higher excise taxes on refined petroleum and automobiles, excluding buses, trucks, cargo vans, jeeps, jeepney substitutes, and special purpose vehicles.
The House decided to retain the 12-percent VAT exemption for cooperatives but removed the exemption on the lease of residential units with a monthly rental not exceeding P10,000.
VAT-exempt were power or fuel generated from renewable sources such as but not limited to biomass, solar, wind, hydropower, geothermal, ocean energy, and other emerging energy sources using technologies such as fuel cells and hydrogen fuels./PN
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