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Makabayan bloc wants ‘wealth tax’ for people with over P1-B worth of assets

/ 09:40 PM September 20, 2021
The House of Representatives’ Makabayan bloc has proposed taxing the super rich, imposing an additional wealth tax for people with taxable assets worth over P1 billion or more.

Makabayan bloc during a press briefing at the House of Representatives on October 9, 2019. INQUIRER.NET FILE PHOTO / NOY MORCOSO

MANILA, Philippines — The House of Representatives’ Makabayan bloc has proposed taxing the super rich, imposing an additional wealth tax for people with taxable assets worth over P1 billion or more.

According to House Bill No. 10253, the super rich tax would require those with over P1 billion taxable assets to pay one percent of the total amount, those with over P2 billion to pay two percent, and for above P3 billion, three percent.

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This amendment to the National Internal Revenue Code of 1997, the Makabayan bloc said, would provide the government over P236.7 billion by taxing just the 50 richest Filipinos.

“Philippine taxation for the longest time has been largely collected from what people pay for, what they consume, or from what they earn, and have never implemented a tax on large fortunes,” the bill read.

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“Hence, this bill proposes a tax on the super-rich. A tax of 1% on wealth above Php1 billion, 2% on wealth above Php2 billion, and 3% over Php3 billion is hereby proposed. This tax will raise Php236.7 billion annually just from the 50 richest Filipinos alone who by any standard are those who can best afford to pay much higher taxes,” it added.

The Makabayan bloc, composed of Bayan Muna Reps. Ferdinand Gaite, Carlos Zarate, and Eufemia Cullamat, ACT Rep. France Castro, Gabriela Rep. Arlene Brosas, and Kabataan Rep. Sarah Elago, said that they have thought of the bill after observing that only 0.8 percent of the country’s families earn P140,000 to P8 million monthly, leading to a wide financial divide between rich and poor.

“With these large incomes, the 50 wealthiest Filipinos’ net worth grew by 30% to P4 trillion even amidst a raging pandemic. By 2021, the 17 wealthiest in our country made it to the Annual Forbes List of the world’s richest individuals,” the Makabayan bloc said.

“On the other hand, 29 percent or over six million Filipino families live on a monthly income of ten thousand pesos or less. For two decades the basic salaries and wages of workers nationwide was virtually stagnant, slightly increasing only to adjust for inflation,” it added.

The additional funding that would be obtained from this measure, the bloc said, must be used for anti-poverty programs.

“The billions in revenue from this tax would aid the government in pursuing its anti-poverty measures and other social programs that would help in closing the widening divide between the rich and the poor,” they noted.

“This tax would further help shift the burden away from regressive consumption taxes towards the handful of the wealthiest who are capable of contributing more to our public coffers,” they added.

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Just last September 10, the Forbes list of the country’s top 50 richest individuals and families were released, with the Sy siblings behind SM Group still at the top with a combined net worth of $16 billion.

Reports showed that even with the COVID-19 pandemic affecting businesses and various industries, the 50 richest Filipinos’ income grew by a combined P4 trillion.

READ: 50 richest in PH get P4T richer; Converge couple enter Forbes list

JPV

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TAGS: House of Representatives, Makabayan bloc, P1 billion net worth, Philippine news updates, Rep. Ferdinand Gaite, Super Rich Tax
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