The bicameral conference committee on the Tax Reform for Acceleration and Inclusion has reconciled differing provisions of the Senate and House versions of the Duterte administration's proposed tax reform program.
In a text message, House Ways and Means Committee chairman Quirino Representative Dakila Cua said the bicameral panel's version is expected to be ratified by both houses of Congress on Tuesday.
Among the items agreed upon by the Senate and House in their versions of the bill include the tax to be imposed on tobacco products.
According to Cua, a P32.50 excise tax per pack will be imposed effective on January 1 to June 30 next year.
This will increase to P35 on July 1, 2018 to December 31, 2019.
The excise tax that will be imposed on oil products, meanwhile, are as follows:
- Gasoline - P7 per liter
- AV gas - P4 per liter
- Kerosene - P3 per liter
- Diesel - P2.50 per liter
- LPG - P1 per liter
- Naptha - P7 per liter
- Refined fuel - P8 per liter
- Bunker fuel - P2.50 per liter
- Lubricating oil - P8 per liter
All petroleum products used as input, feedstock, raw materials for petrochem and refining or as replacement fuel, meanwhile, are exempted from excise tax.
Cosmetic procedures will be imposed an excise tax of five percent.
Excise tax rates for cars and automobiles, on the other hand, are as follows:
- 4 percent for vehicles priced up to P600,000
- 10 percent for vehicles priced over P600,000 to P1 million
- 20 percent for vehicles priced over P1 million to P4 million
- 50 percent for vehicles priced P4 million
Once ratified by both houses of Congress, the bill will be referred to President Rodrigo Duterte for his signature and enactment. —NB, GMA News