THE Department of Finance (DoF) said higher excise tax on sugar sweetened beverages can generate an additional P47 billion in revenue in the first year of implementation. HB 4774 contains Package One of the Comprehensive Tax Reform Program (CTRP) that aims to lower personal income tax rates, adjust excise taxes on oil and automobiles and broaden the value-added tax (VAT) base while retaining exemptions for senior citizens and persons with disabilities. Foregone fuel tax revenueAmong the modifications in the substitute bill is the non-indexation of the fuel excise tax rates to inflation after the three-year staggered rate increase is completed in 2020—a change in the original measure which is currently opposed by the DoF. The government has proposed to correct this by adjusting the fuel excise tax rates, along with the proposal to significantly lower personal income taxes to offset the impact of the higher taxes on petroleum products. “The entire program can generate P750 billion in fuel, health, and environmental savings in present value terms,” he added.

Source: Manila Times May 10, 2017 17:48 UTC