By Philstar
Only 0.0001 percent of the country’s population will bear the 43 percent taxes on “non-essentials” and on upscale real estate property being proposed in the House of Representatives.
“The easiest way to tax wealth is through conspicuous or luxurious consumption and through taxation of immovable assets (i.e. land),” Albay Rep. Joey Salceda wrote in his House Bill 6993, which also aims to tax “non-essential” goods like branded bags and jewelry.
“Property taxes on immovable assets are difficult to evade,” the chairman of the House ways and means committee further said. “An increase in real property tax rates across the board will be painful and counterproductive.”
“But proper valuation of luxury real estate (such as those in gated subdivisions and golf courses) will help increase revenues and make the tax system more progressive,” he wrote in his explanatory note.
Salceda’s measure aims to increase by five percent more the current 20 percent tax rate on “non-essentials goods,” making it 25 percent. Such goods cover items like luxury Louis Vuitton bags, jewelry, perfume and eau de toilette, yachts and wristwatches.
On top of Salceda’s proposed 25 percent are the 12 percent value-added tax for sales of real estate properties, and six percent capital gains tax, or a total of 43 percent tax once signed into law.
READ the full story HERE.
