Senator Sherwin Gatchalian, chairman of the committee, noted that the proposed tax reform measure being pushed by the government is only one component in the P8-trillion “Build Build Build” program. Gatchalian added that last-minute inclusion of the P10 excise tax on sugar-sweetened beverages in the House of Representatives’ version of the Train bill could also cause delays in the Senate because they also need to study it. It seeks among others increase in excise tax being imposed by the government on regular gasoline and other products to P10 per liter. For diesel, kerosene, liquefied petroleum gas (LPG) and other products that are currently exempted from excise tax, a P6 per liter excise tax would be imposed that could result in an increase of P6 per liter on these petroleum products by 2019. According to Gatchalian, even if Congress passed the Train bill, it could only generate about P400 to P500 billion, which is too small compared to the required P8 trillion for the five-year infrastructure program.

Source: Manila Times July 09, 2017 10:18 UTC