Bacolod City SP voices opposition to excise tax, VAT expansion

Posted by watchmen
May 26, 2017
Posted in TOP STORIES

By Dominique Gabriel G. Bañaga

The Bacolod City Sangguniang Panlungsod (SP) passed a resolution voicing their opposition to the proposed excise tax on sugar and the expansion of the value-added tax (VAT), a part of the comprehensive tax reform package (CTRP) submitted by the administration of President Rodrigo Duterte.
According to an email from City Councilor Caesar Distrito, CTRP aims to increase taxes on basic commodities, as well as individual income.
The city councilor explained, among the commodities included in CTRP is fuel, wherein diesel will see an initial P3 tax per liter, which will later increase to P5 by 2019, and eventually hit P6 by 2020.
He added, kerosene and liquified petroleum gas (LPG) will also be included in the tax, at P6 per liter.
CTRP also covers the imposition of a P10 per liter excise tax on sugar sweetened beverages (SSB).
“The imposition of these taxes will surely affect the daily consumption of our citizens,” Distrito warned. “With higher fuel prices, the prices of basic commodities will also increase.”
He also said the present situation in the Philippines requires the national government and lawmakers to come up with solutions that will ease the daily problem of constituents, while not overburdening citizens with excessive taxes.
Distrito added, higher taxes are not a guarantee developments will come. He proposed, instead, efficient and proper collection of taxes, before imposing increases.
Previously, Negros Occidental 3rd District Rep. Alfredo Benitez sought to lower the proposed excise tax on SSB from 10 percent to five percent per liter, with 15 percent of the proceeds from excise tax on SSB going to the Sugar Industry Development Act (SIDA).
Party-list Rep. Stephen Paduano, meanwhile, proposed a separate amendment with a 15 percent share of the projected P3.5 billion incremental revenue be given directly to sugar milling districts through the Sugar Regulatory Administration (SRA)./WDJ

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