A militant lawmaker on Tuesday called on his colleagues to reject the Palace-backed tax reform package when it is deliberated in the plenary.
Bayan Muna party-list Rep. Carlos Zarate was referring to the proposed Tax Reform for Acceleration and Inclusion bill that seeks to lower personal income tax rates, expand the value-added tax base, adjust excise taxes on petroleum and automobiles, and ease the rates of estate and donor’s taxes—which the House committee on ways and means approved last Monday.
“This bill will definitely hit the poor hard because it would mean higher prices of basic goods and services,” Zarate warned.
Once enacted, Zarate said diesel, which is P31 now would be P34 next year, P36 in 2019 and P37 in 2020. Gasoline which is P45 now would be P52 next year. On the hand, LPG that is P541 now, would be P574 next year, then P596 and P607 after.
Zarate also noted the basic remittance charge, like the Philippine-based courier company LBC, which is currently pegged at P6 would increase to P7.25 for P100 and increase depending on the amount sent.
“These are just a few of the strategic products that would increase and would cause a domino effect to other products and services,” Zarate said.
“As members of Congress, we should listen to the sentiments and clamor of our people by stopping this anti-people tax reform bill,” he added.
Quezon Rep. Dakila Cua, House committee ways and means chairperson, said his committee is expected to come up with a committee report on the committee-approved bill next week.
“Hopefully, we can submit the committee report to House Committee on Rules today [Monday],” he said.
Cua said declaring the tax reform package as urgent measure would ensure its immediate approval at the lower chamber.
“The DoF is already working on that [certification of the bill as urgent],” he said.
Even without the certification of urgency, Cua, however, said the lower chamber could still pass it on third and final reading before the Congress goes on sine die adjournment in June.
Under the bill, workers earning P250,000 will be exempted from paying personal income taxes.