THE House committee on ways and means on Wednesday approved the proposed Comprehensive Tax Reform Package of the Duterte administration by a 17-4 vote.
But some lawmakers were worried about the decision of the panel, chaired by Quirino Rep. Dakila Cua, to pass House Bill 4774 that seeks to lower personal income taxes but increase taxes on petroleum and other products to offset the revenue losses of the government.
Oppositors to the measure said the proposal might result in an increase in prices of basic goods amd commodities.
But Cua defended the proposal, saying it is expected to generate P206.8 billion in revenues once enacted.
Cua said the Department of Finance’s decision to spread out the proposed P6 a liter to increase oil excise tax into three tranches of P3, P2 and P1 in the first three years would lighten the burden on the riding public.
The measure imposes the following tax rates:
Leaded premium gasoline, per liter of volume capacity, from P5.35 to P7 in 2017, P9 in 2018 and P10 in 2019; unleaded premium gasoline, per liter of volume capacity, from P4.35 to P7 in 2017, P9 in 2018 and P10 in 2019.
Aviation turbo jet fuel, per liter of volume capacity, from P3.67 to P7 in 2017, P9 in 2018 and P10 in 2019; kerosene, per liter of volume capacity, from P0.00 to P3 in 2017, P5 in 2018 and P6 in 2019.
Diesel fuel oil, and on similar fuel oils having more or less the same generating power, per liter of volume capacity – from P0.00 to P3 in 2017, P5 in 2018 and P6 in 2019; liquefied petroleum gas, per liter, from P0.00 to P3 in 2017, P5 in 2018 and P6 in 2019;
Asphalts, per kilogram, from P0.56 to P3 in 2017, P5 in 2018 and P6 in 2019; bunker fuel oil, and on similar fuel oils having more or less the same generating power, per liter of volume capacity, from P0.00 to P3 in 2017, P5 in 2018 and P6 in 2019.
The bill provides that these tax rates shall also be increased by four percent every year thereafter effective Jan. 1, 2020 through revenue regulations issued by the finance secretary.