ECOP supports higher income tax on 'ultra-rich'

An official of the Employers' Confederation of the Philippines (ECOP) supports the plan to impose a higher income tax on the "ultra-rich" under the proposed tax reform package of the Duterte administration, saying it is a good approach.

"We supported that, we supported the clustering," ECOP President Donald G. Dee told GMA News Online on the sidelines of a roundtable discussion in Quezon City on Wednesday.

Dee is also an honorary chairman and chief operating officer of the Philippine Chamber of Commerce and Industry (PCCI).

Under the proposed tax reform package of the Department of Finance (DOF), the income tax rate of the ultra-rich or those earning more than 5 million annually will be increased to 35 percent from 32 percent.

"I think that's a very good approach. Where we have to really work now, is the VAT (value-added tax). Tatamaan talaga 'yung middle class," Dee said.

The Department of Finance (DOF) is also looking at imposing additional taxes on "fatty foods," luxury items, and casino winnings.

The DOF also plans to increase the excise tax on gasoline to P10.00 per liter from P4.35, and on diesel from zero to P6.00 per liter.

"Understandable na rin. Mababa din ang fuel costs, so meron talagang space for us to adjust and have a bigger take on taxes," Dee said.

He noted, however, that the proposed increase may not be reasonable.

"Six pesos seems very high. When fuel price goes up, are you just going to maintain that or reduce taxes? Is it an automatic thing or are you just going to maintain that? Those are the things we are asking," he said.

Finance Undersecretary Karl Chua said the department is now finalizing the proposed tax reform package before presenting it to Congress this month. — VDS, GMA News