De Lima files bill seeking 'ultra-wealth tax' on PH billionaires

ML Party-list Rep. Leila de Lima has filed a bill seeking to impose an annual ultra-wealth tax on the country’s billionaires, particularly those whose net taxable assets exceed P1 billion.

De Lima’s House Bill No. 9274, or the “Ultra-Wealth Tax Act,” proposes to amend some provisions of the National Internal Revenue Code of 1997. She noted that several consumption taxes heavily burden the poor and the middle class.

"Government interventions are therefore necessary to address the rising gap in inequality brought about by massive economic disruptions, coupled with systemic failures, including having a regressive taxation system,” she said in a statement Sunday.

The proposed measure would only apply to a small number of taxpayers. The rates of the ultra-wealth tax shall be as follows: 1% for wealth above P1 billion; 2% for wealth above P2 billion, and 3% for wealth above P3 billion.

The proceeds will be exclusively used for public health services, education, local government support fund, social protection and employment, and housing, said De Lima.

“To truly promote social justice and help those in need, we must give our fair share. Isulong ang makatarungan at inklusibong pagbubuwis at gamitin ang pondo ng bayan sa epektibong mga programa at serbisyo na may tunay na pakinabang sa ating mga kababayan," the lawmaker said.

(To truly promote social justice and help those in need, we must give our fair share. Let us advance just and inclusive taxation, and utilize public funds for effective programs and services that genuinely benefit our fellow citizens.)

A wealth tax was first proposed by former National Economic Development Authority secretary Winnie Monsod amid the challenges brought by the Middle East tension. For its part, Malacañang said that all suggestions are being considered.

But the Palace noted that some countries in Europe abandoned their wealth tax policies due to the complexity and low revenue generated. —Vince Angelo Ferreras/RF, GMA News