Tax reform package clears House ways and means committee
With a vote of 17- 4 and three abstentions, the House committee on ways and means Wednesday approved the Comprehensive Tax Reform Package, which proposes a P6 tax on petroleum products and ad valorem tax on new cars that could cause prices of basic goods to rise.
Kabataan party-list Rep. Sarah Elago made this warning after the measure cleared the committee level. Though the measure will exempt workers earning P250,000 and below for 2018 and 2019 from paying personal income taxes on top of the tax-free P82,000 worth of allowances and 13th month pay annually, new taxes will eat into gains, she said.
“We have to watch this carefully,” said Elago.
If this is passed into law, it is expected to generate P206.8 billion in revenues.
Quirino Rep. Dax Cua, chairman of the House committee on ways and means, said the Department of Finance’s (DOF) decision to spread out a proposed six pesos a liter to increase oil excise tax into three tranches of P3, P2 and P1 in the first three years will lighten the burden. DMS