The House Ways and Means Committee approved the Comprehensive Tax Reform Package of the Duterte Administration.
17 congressmen approved of the said measures, while four voted ‘no’, and three chose to abstain.
Important provisions of the Tax Reform proposal of Malacañang were left untouched. This includes the Income Tax Exemption for people earning Php 250,000 per day.
Meanwhile, the six pesos excise tax increase for Petroleum Products will be divided into three segments. Three pesos will added to per liter of fuel during the first year of the Tax Reform Package. Two pesos will be added per liter during the second year, and one peso will be added on the third year of the bill’s implementation.
The plenary has also decided to decrease the additional excise tax for automobiles, especially luxury vehicles whose proposed tax in now 120% compared to the previous 200%.
The tax for per liter of softdrinks and sweetened beverages is set to Php 10, and will be increased by 4% per year.
The Value Added Tax exemption of corporates were also removed, in order to expand the VAT base.