eseoulpost
BusinessPhilippines
Tax cut seen to boost Filipinos' buying power to 20%
min  |  min
폰트키우기 폰트줄이기 프린트하기 메일보내기 신고하기
승인 2017.06.25  
트위터 페이스북 미투데이 요즘 네이버 구글 msn
   

MANILA, June 25 -- A lawmaker at the House of Representatives on Sunday said the proposed lowering of personal income tax rates could give a 20-percent boost in the purchasing power of at least nine out of 10 Filipino individual taxpayers.
In a statement, Buhay Rep. Lito Atienza cited projections made by online stockbroker COL Financial Group Inc. that the personal income tax cuts will “lead to a 20-percent increase in disposable income for 93 percent of taxpayers.”
“Calculations made by independent entities such as COL Financial tend to be more reliable compared to estimates from other sources, including official sources,” Atienza said.
On May 31, the lower chamber approved House Bill 5636, otherwise known as the Tax Reform for Acceleration and Inclusion (TRAIN) with 246 votes in the affirmative, 9 negative and one abstention.
The bill was transmitted to the Senate for its own deliberations. All tax measures must emanate from the House of Representatives under the Constitution.
“The tax reductions are bound to rev up consumption spending by middle class families, which may well help counteract possible delays in new business activities due to the recent declaration of martial law in Mindanao and the Battle of Marawi,” Atienza said.
Under the tax reform bill, workers earning no more than PHP250,000 annually will be exempted from paying personal income taxes.
Meanwhile, those earning over PHP250,000-400,000 annually will have a 20 percent tax rate in excess of PHP250,000; those earning over PHP400,000-800,000 will pay PHP30,000 plus 25 percent of the excess over PHP400,000; while those grossing over PHP800,000-2 million shall be taxed PHP130,000 plus 30 percent in excess of PHP800,000.
Furthermore, those bringing in over PHP2 million-5 million shall be taxed PHP490,000 plus 32 percent of the excess over PHP2 million, while the so-called “ultra rich”, or those earning over PHP5 million, shall be taxed PHP1.45 million plus 35 percent of the excess over PHP5 million.
There is also an increase in the tax exemption for the 13th month pay and other benefits from PHP82,000 to PHP100,000.
The 8 percent tax on the self-employed and professionals will now only be imposed on gross receipts in excess of PHP250,000.
To compensate for the revenue losses from the lowering of the PIT rates, some of the offsetting measures include increasing excise tax rates on all petroleum products and automobiles; expanding the value added tax (VAT) base; introducing excise tax on sugar-sweetened beverages; and improving tax administration measures.
The bill seeks to impose the following excise tax rates on diesel fuel oil, liquefied petroleum gas, and bunker fuel oil: PHP3 per liter in 2018; PHP5 in 2019, and PHP6 in 2020.
The bill would also increase the existing excise taxes on lubricating oils and greases, waxes, denatured alcohol for motive power, leaded premium gasoline, unleaded premium gasoline, and aviation turbo jet fuel to PHP7 per liter in 2018, PHP9 in 2019, and PHP10 in 2020.
As for the excise tax on automobiles, the measure proposes a staggered implementation of increased levies in two schedules in 2018 and 2019.
The excise tax for cars will be raised to 3 percent by 2018 and further increased to 4 percent by 2019 if the net manufacturer’s price/importer’s selling price is up to PHP600,000 for the lower bracket.
For the higher bracket with a price of over PHP3.1 million, the tax rate by 2018 will be PHP1.468 million plus 90 percent of the value in excess of PHP3.1 million. For 2019, if the price is over PHP3.1 million, the tax rate will be PHP1.824 million plus 120 percent of the value in excess of PHP3.1 million.
Meanwhile, sugar-sweetened beverages shall be slapped with an excise tax of PHP10-per liter of volume capacity by 2018.
The bill will also lift the VAT exemption on lease of residential units with monthly rental not exceeding PHP10,000. (Filane Mikee Cervantes/PNA)

< 저작권자 © eseoulpost 무단전재 및 재배포금지 >
폰트키우기 폰트줄이기 프린트하기 메일보내기 신고하기
트위터 페이스북 미투데이 요즘 네이버 구글 msn 뒤로가기 위로가기
이 기사에 대한 댓글 이야기 (0)
자동등록방지용 코드를 입력하세요!   
확인
- 200자까지 쓰실 수 있습니다. (현재 0 byte / 최대 400byte)
- 욕설등 인신공격성 글은 삭제 합니다. [운영원칙]
이 기사에 대한 댓글 이야기 (0)
Most Read
1
Local Press: UAE sets a precedent in banking on health and education
2
Seoul housing prices higher than Tokyo: report
3
PHL plans to spend $23 bil. on tourism infrastructure for next 5 years
4
PM Trudeau looks forward to launch of BHAF in Canada
5
PH likely to sustain economic momentum
6
Tourism Sec. Teo attends opening of 14th Feng Shui Convention
7
Kimjang Fest of ROK-US Good Neighbors slated for Nov.24
8
Rare 5.4-magnitude earthquake strikes southeastern Korea
9
Arab foreign ministers entrust Arab Group in New York to address SC on Iran's violations
10
Women in Energy conference highlights growing role of women in oil and gas workforce
Photo News Green Biz
UAE Council for Climate Change and Environment convenes third meeting
UAE Council for Climate Change and...
min
National Climate Change Plan builds on the existing policy for green growth, sustainable development in UAE, says Al Zeyoudi
National Climate Change Plan build...
min
Global platform for smart & sustainable cities officially  launched in Seoul
Global platform for smart & sustai...
min
Global platform for smart & sustainable cities to be launched by World Green Economy Organisation (WGEO) in Seoul on May 23
Global platform for smart & sustai...
min
50 successfully rehabilitated sea turtles released for Endangered Species Day
50 successfully rehabilitated sea ...
min
Photo News Sports
Korea bags 3rd gold in Asian Youth Bowling Tilt
Korea bags 3rd gold in Asian Youth...
min
Sharjah's Arab Women Sports Tournament holds preparatory meeting
Sharjah's Arab Women Sports Tourna...
min
S. Korean Ji Eun-hee captures 1st LPGA win in 8 years
S. Korean Ji Eun-hee captures 1st ...
min
President Moon promises full support for PyeongChang Paralympic Games
President Moon promises full suppo...
min
N. Korea submitted document to IPC for PyeongChang Paralympics participation in May: S. Korean FM
N. Korea submitted document to IPC...
min
UAE Jiu-Jitsu U15 Team returns with 18 medals from World Cup in Montenegro
UAE Jiu-Jitsu U15 Team returns wit...
min
S. Korea qualify for 9th consecutive FIFA World Cup
S. Korea qualify for 9th consecuti...
min
Veteran midfielder determined to set up strikers in World Cup qualifiers
Veteran midfielder determined to s...
min
Photo News World
Korea bags 3rd gold in Asian Youth Bowling Tilt
Korea bags 3rd gold in Asian Youth...
min
Sharjah's Arab Women Sports Tournament holds preparatory meeting
Sharjah's Arab Women Sports Tourna...
min
S. Korean Ji Eun-hee captures 1st LPGA win in 8 years
S. Korean Ji Eun-hee captures 1st ...
min
President Moon promises full support for PyeongChang Paralympic Games
President Moon promises full suppo...
min
N. Korea submitted document to IPC for PyeongChang Paralympics participation in May: S. Korean FM
N. Korea submitted document to IPC...
min
UAE Jiu-Jitsu U15 Team returns with 18 medals from World Cup in Montenegro
UAE Jiu-Jitsu U15 Team returns wit...
min
S. Korea qualify for 9th consecutive FIFA World Cup
S. Korea qualify for 9th consecuti...
min
Veteran midfielder determined to set up strikers in World Cup qualifiers
Veteran midfielder determined to s...
min
Photo News Opinion
IMF upgrades S. Korea's economic growth outlook to 3.2 pct this year
IMF upgrades S. Korea's economic g...
min
Ex-president slams probes into political maneuvering scandals
Ex-president slams probes into pol...
min
Global market improvements fuel upturn in S. Korea economy under President Moon
Global market improvements fuel up...
min
Renegade lawmakers rejoin main opposition party
Renegade lawmakers rejoin main opp...
min
Interior minister vows toughened security during Trump visit
Interior minister vows toughened s...
min
Police to place forces on highest-level alert during Trump's visit
Police to place forces on highest-...
min
Main opposition party decides to deprive Park of membership
Main opposition party decides to d...
min
Defense Security Command chief pledges political neutrality
Defense Security Command chief ple...
min
Newspaper AboutNews ReportAdvertiseComplaintsPrivacy PolicyJuvenile protectionRejection of E-mail Collection
Gangnam-gu, Teheran 52 street in Tehran Bldg, 616(Yeoksam-dong)  |  Main Phone: 02) 563-0604  |  Fax: 02) 538-5665
Chairman : jeong-woo Lee  |  Advisor : byung-il Min  |  Publisher: jae-mo Kah  |  Editors: il-hong Kim
Registration Number 1928 Seoul ah  |  eseoulpost.com / eseoulpost.net / Global Korea.,Ltd
Copyright © 2011 eseoulpost. All rights reserved. mail to jaemokah@daum.com , kih10kr@empas.com/ www.globalkorea.info
arabafrica.net / UAE Interract / Emirtes News Agency(WAM)/ http://wam.org.ae / www.uaeinteract.com