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House passes Duterte tax reform package
The House of Representatives on Wednesday night approved on third and final reading
a tax reform package which will impose 20 percent tax on lotto earnings and other winnings, P6 per liter tax on petroleum products, P10 per liter excise tax on sugar and sweetened beverages (SSB) and an additional tax on new vehicles.
From being tax exempt, a 20 percent tax on final cash winnings from lotto and sweepstakes lottery by the Philippine Charity Sweepstakes Office (PCSO) will be imposed.
The proposal will exempt workers earning P250,000 and below from paying personal income taxes.
From the present P82,000, the measure increased a tax exemption for P100,000 worth of 13th month pay and other cash benefits received by a taxpayer.
The measure also lowers the rates of estate and donor’s taxes by imposing unitary tax rate of 6 percent.
The proposed P6 a liter to increase oil excise tax will be spread out in three tranches of P3, P2 and P1 in the first three years which the Department of Finance believes will lighten the load for the public.
Once the bill becomes a law, diesel now P31 per liter would reach P34 next year, P36 in 2019 and P37 in 2020 while gasoline, which is P45 per liter, would be P52 next year, a a congressman warned.
Liquefied Petroleum Gas (LPG), which is P541 per tank presently, would be P574 next year, then P596 and P607, he said.
Starting January 2019, new vehicles will be imposed these excise taxes: three percent for automobiles sold at P600,000 or below; P18,000 plus 30 percent in excess of P600,000 for automobiles costing above P600,000 to P1.1 million; P168,000 plus 50
percent in excess of P1.1 million for automobiles costing over P1.1 million to P2.1 million; P668,000 plus 80 percent in excess of P2.1 million for automobiles costing over P2.1 million to P3.1 million and P1,468,000 plus 90 percent in excess of P3.1 milliion for automobiles costing over P3.1 million. DMS
