MANILA – The House of Representatives on Wednesday night ratified the bicameral conference committee report on the proposed Tax Reform for Acceleration and Inclusion (TRAIN), the first package of the comprehensive tax reform program (CTRP) envisioned by President Rodrigo Duterte’s administration.
This, after the bicameral conference committee was able to reconcile the differences in the House and Senate version of the TRAIN on Monday.
The ratified report will be transmitted to the Palace for President Rodrigo Duterte’s signature.
According to House ways and means committee chair Dakila Cua, the proposed coal tax in the Senate-approved version was adopted by lawmakers with rates halved at PHP50 per metric ton for the first year of implementation, PHP100 for the second, and PHP150 for the third.
The original rates, which was met with much contention, sought a 3,000-percent increase in coal taxes from the current PHP10 raised to PHP100 in 2018, PHP200 in 2019 and PHP300 by 2020.
For excise taxes on automobiles, the rate will be increased to 4 percent for prices up to PHP600,000; 10 percent, for over PHP600,000 to PHP1 million; 20 percent for over PHP1 million up to PHP4 million; and 50 percent for over PHP4 million.
Meanwhile, the cosmetic procedures will be slapped with a 5 percent tax rate.
The excise taxes on petroleum products, are as follows: gasoline PHP7, Av gas PHP4, asphalts PHP8, kerosene PHP3, diesel PHP2.50, LPG PHP1, naptha PHP7, refined fuel PHP8, bunker fuel PHP2.50, lubricating oil PHP8, paraffin wax PHP8, petcoke PHP2.50.
There is also an increase in the tax exemption for the 13th month pay and other benefits from the current PHP82,000 to PHP90,000.
Workers earning no more than PHP250,000 annually will be exempted from paying personal income taxes.
The implementation of the proposed tax reform is eyed on January 1, 2018. (PNA)