- House ways and means committee to endorse P6 diesel tax bill
- Bill also contains tax increases in gasoline, oils, and vehicles
- Income tax reduction included in the measure
MANILA, Philippines – The House ways and means committee is set to endorse a proposed measure which would increase taxes on diesel, gasoline, oils, and vehicles while also reducing income tax.
The bill would place an initial P3 tax per liter or kilogram on currently-tax-free diesel, kerosene, liquefied petroleum gas, bunker fuel starting July 1 this year. The tax would be increased to P5 by January 1, 2018, and finally to P6 starting January 1, 2019.
Asphalts, which have a current tax of P0.56 per kilogram, are also included in the increase.
The move to endorse came after the House heard Social Welfare Secretary Judy Taguiwalo expressed her opposition to the new tax measure.
The Philippine Star quoted Taguiwalo as saying it will be the poor who will have to bear the inevitable increase in inflation and prices if the measure is imposed.
The measure also proposes placing a uniform P7 tax on lubricating oils and greases, waxes, regular, leaded and unleaded gasoline, and aviation gas starting July 1 this year, to go up to P9 on January 1, 2018, and finally to P10 on January 1, 2019.
Meanwhile, vehicles worth up to P1.1 million will have their current tax increased by 100 percent. Those worth between P1.1 million to P2.1 million will be taxed P224,000 plus 100 percent of the excess over P1.1 million. Those over P2.1 million will be taxed P1.224 million plus 200 percent of the excess over P2.1 million.
The proposed income tax table meanwhile is as follows:
Up to P250,000 – exempted
Over P250,000 – P400,000 – 25 percent of the amount exceeding P250,000
Over P400,000 – P800,000 – P30,000 plus 25 percent of the amount exceeding P400,000
Over P800,000 – P2 million – P130,000 plus 30 percent of the excess over P800,000
Over P2 million – P5 million – P490,000 plus 32 percent of the excess over P2 million
Over P5 million – P1.450 million plus 35 percent of the excess over P5 million