House passes tax reform package | Inquirer News

House passes tax reform package

By: - Reporter / @NikkoDizonINQ
/ 05:20 AM June 01, 2017

The House of Representatives passed on third and final reading President Duterte’s comprehensive tax reform package before the 17th Congress adjourned its first regular session.

Voting 246-9-1, congressmen passed House Bill 5636, also known as the Tax Reform for Acceleration and Inclusion (Train). Opposition lawmaker Albay Rep. Edcel Lagman was the lone abstention to the bill.

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Lawmakers, majority from the militant Makabayan bloc, who voted against the bill, emphasized that the tax measure was antipoor because while it did lower personal income taxes, the public would shoulder the increase in prices of basic goods and services as a result of additional taxes on fuel and sugar-sweetened beverages, among others.

The most attractive feature of the Train is the lower tax rate for fixed-income earners starting January 1, 2018.

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Government will no longer impose tax on personal income of not over P250,000.

VAT exemptions

The House retained the 12- percent value-added tax (VAT) exemption for cooperatives, following strong opposition to its repeal.

However, the bill removed the VAT exemption on the lease of residential units with a monthly rental not exceeding P10,000.

VAT-exempt are power or fuel generated through renewable sources of energy such as but not limited to biomass, solar, wind, hydropower, geothermal, ocean energy, and other emerging energy sources using technologies such as fuel cells and hydrogen fuels.

Automobiles shall be levied incremental taxes effective Jan. 1 next year.

The controversial excise tax on petroleum products was retained despite strong opposition from various quarters.

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Effective Jan. 1 next year, there would be a P7 tax on leaded and unleaded premium gasoline; P3 for kerosene; P3 for diesel fuel oil; P3 for liquefied petroleum gas; and P3 per kilogram of asphalts, among others.

An excise tax of P10 would be imposed on sugar-sweetened beverages. Caloric and artificial sweeteners will also be imposed the P10 tax.

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TAGS: House Bill 5636, House of Representatives, Philippine news updates, Tax Reform for Acceleration
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