THE House committee on ways and means on Tuesday postponed the approval of the bill on the proposed Comprehensive Tax Reform Package of President Rodrigo Duterte.
Instead of passing House Bill 4774, the committee, chaired by Quirino Rep. Dakila Carlo Cua, formed a technical working group to harmonize provisions of the bill.
House Minority Leader and Quezon Rep. Danilo Suarez filed the motion to call off the approval of the bill for further study.
Deputy Speaker and Pampanga Rep. Gloria Macapagal-Arroyo seconded the motion.
Suarez’s motion came after House Deputy Speaker and Batangas Rep. Raneo Abu inquired on how the the proposed tax reform package shall be voted on.
The Finance department would want lawmakers to vote on several proposals under the tax reform package as one, Cua said.
The committee then agreed to approve the proposal in package, but this would have to go through a TWG study first.
It voted to form a TWG through 15 lawmakers in favor while Alliance of Concerned Teachers party-list Rep. Antonio Tinio voted to scrap the proposal DoF proposal.
The tax package proposes to exempt individuals earning P250,000 from the payment of income tax.
Nevertheless, the proposal includes the imposition of excise tax on fuel as compensatory measure for the foregone revenues due to the lowering of income tax.
The DoF proposes a staggered increase of P6 per liter of diesel, kerosene, and LPG to be imposed within a three-year period.
The bill also includes the relaxation of the Bank Secrecy Act, imposition of excise taxes on automobiles and taxing Philippine Charity Sweepstakes Office numbers’ game and lotto winnings.
HB 4774 involves foregone revenue of around P200 billion; but at the same time will generate around P206.8 billion for the government in the first full year of its implementation.
