DOF mulls taxing cars to ease traffic, raise revenues

The Department of Finance is considering slapping taxes on the purchase cars as part of the Duterte administration's comprehensive tax reform program.

Aside from telling senators about a proposal on imposing taxes on "fatty foods" and on carbonated drinks, Finance Secretary Carlos Dominguez said the department was also considering taxes on luxury items.

The administration's tax reform program is anchored on reducing the income tax rates and looking for ways to offset the expected revenue losses.

"For instance, how many cars are we adding every year and it's not helping the traffic. So maybe we should discourage it—buying cars—so we can invest more in rapid transit," Dominguez told reporters.

Domingo and other economic managers of the Duterte administration briefed the Senate Committee on Finance as the panel started its hearings on the proposed P3.35-trillion budget for 2017.

Dominguez said the economic managers are also looking at taxing casino winnings.

"That's possible, yes. If you win in the casino you should pay a tax just like you do in other cases," Dominguez said.

Asked if this will be part of the comprehensive tax reform package set to be submitted to the Congress by September, Dominguez said: "It's probably later."

The DOF in July said it planned to submit its proposed reforms to the Congress by September. —NB, GMA News