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Monday, April 15, 2024

Marcos backs Joey’s luxury items tax bill

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PRESIDENT Ferdinand R. Marcos Jr. said he will back the bill proposed by Albay Representative Jose “Joey” S. Salceda to hike the tax for luxury items to help boost government revenue.

In an interview with reporters on Tuesday, the President said he finds Salceda’s House Bill No. 6993 “reasonable” since it will target the wealthy.

The bill will increase the tax for non-essential goods from 20 percent to 25 percent and is expected to generate P15.5 billion annually.

It will affect wristwatches, bags, wallets, and belts value, which are valued at more than P50,000; beverages worth more than P20,000 a liter; antiques valued at P100,000; paintings valued at more than P1 million.

Also covered are automobiles valued at more than P10 million; private aircraft and parts except those for the use of the Philippine government, airlines, and logistics companies; and the sale of residential properties worth above P100 million.

“Luxury goods, as those who have put in some study on these know, the demand for these do not change whatever the reason is,” Marcos said in mixed Filipino and English.

“For the rest of us, who are not necessarily consumers of luxury goods, we feel it if the economy is down,” he added.

Marcos made the announcement at the 2023 Bureau of Internal Revenue (BIR) on Tuesday, when the Department of Finance (DOF) reiterated it will push for the passage of bills, taxing single-use plastics and digital transactions to generate additional income.

Salceda lauded Marcos’ support for his legislation, which he said, is a good alternative to the proposed “wealth tax” by the Makabayan bloc since it will tax consumption rather than income.

He noted the demand for luxury goods will not be affected despite the higher tax since its consumers can afford it.

Support government

In a related development, Marcos called on the public to correctly pay their taxes on time to help in the country’s ongoing pandemic recovery.

He said government will correctly manage and utilize the collected taxes for the benefit of the country.

“Together, let us join hands in building a more equitable, progressive, and prosperous society where every Filipino has the chance to improve their lives, pursue their aspirations, and contribute to the building of our nation,” Marcos said.

The President instructed the BIR to remain professional and use new technology so it can reach its target collection this year.

BIR is targeting to generate P2.6 trillion this year.

The Marcos family is still facing a case over unpaid estate tax from 1987 to 1989, based on a Supreme Court ruling. The alleged liability has been estimated variously, with the family disputing the sums cited, especially the high end of P203 billion.

Marcos earlier said he wants the case to be reopened because his family was not given the chance to argue their case.

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