Imposing higher income tax on 'ultra-rich' may lead to lower tax revenue — MAP

Imposing higher personal taxes on the "ultra-rich" under the proposed tax reform package of the Duterte administration may lead to lower government revenues, the Management Association of the Philippines (MAP) said Tuesday.

"These are people that can put their money outside the country. And we could lose revenue," Atty. Benedicta Du-Baladad, a governor of the MAP, told the House of Representatives Committee on Ways and Means.

The committee is holding a hearing on the proposed tax reform package as part of the legislative process for the reforms.

Department of Finance (DOF) Secretary Carlos Dominguez III has noted that the government is mulling over plans to raise the personal income tax rates of the ultra-rich or those earning P5 million or higher per year.

The government was thinking of raising the income tax rate to 35 percent from 32 percent, according to the Cabinet official.

Responding to MAP's concerns, Rep. Dakila Cua, who heads the committee, noted the comprehensive tax reform proposal has not yet been transmitted to the House. — VDS, GMA News