The House of Representatives on Wednesday ratified the proposed Tax Reform for Acceleration and Inclusion (TRAIN), on the last day of their session before they go on a holiday break.
The ratification came after both the Senate and the House reconciled the differing provisions of their respective versions of the Duterte administration's proposed tax reform program.
Under the measure, the income tax of wage-earners would be decreased, but the excise tax imposed on goods and services would be increased.
For one, individuals who are earning an annual salary of P250,000 are exempted from paying income tax.
Members of the bicameral conference committee, who ironed out the conflicting provisions of the bill, have likewise agreed to increase the tax exemption cap of 13th month pay and other bonuses to P90,000.
However, excise tax imposed on goods such as tobacco, oil and automobiles would be increased.
According to House Ways and Means Committee chair Dakila Cua, a P32.50 excise tax per pack will be imposed starting January 1 to June 30 next year.
This rate will increase to P35 on July 1, 2018 to December 31, 2019.
The excise tax that will be imposed on oil products, meanwhile, would be 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, which are used as input, feedstock, raw materials for petrochem and refining or as replacement fuel are exempted from excise tax.
Moreover, cosmetic procedures also will be imposed an excise tax of five percent.
Cars and automobiles, on the other hand, will have an excise tax of:
- 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
Majority Leader Rodolfo Fariñas earlier said that once the tax reform bill is ratified, it may also be signed by President Rodrigo Duterte on December 19, alongside the proposed 2018 General Appropriations Act. — BAP, GMA News