PRESIDENT Ferdinand “Bongbong” Marcos Jr. expressed support to the proposal of Albay Representative Joey Salceda to increase the tax of luxury items, which only the “super rich” individuals can afford.
In an interview on Tuesday, February 7, following his attendance to the Bureau of Internal Revenue’s (BIR) 2023 National Tax Campaign Kickoff in Pasay City, Marcos said the current tax imposed on luxury goods only covers very specific items, with demand remaining unaffected despite changes in the situation based on recent studies.
“For the rest of us, who are not necessarily consumers of luxury goods ay ramdam natin kapag bumagsak ang ekonomiya, ngunit kung titingnan ninyo, ‘yung mga luxury items, ‘yung mga magagarang kotse, ‘yung mga designer na damit at saka mga bag, hindi nagbabago ang presyo niyan dahil may kaya ang mga bumibili,” he said.
“So palagay ko naman, it’s reasonable that we will tax the consumption side of those who are consuming luxury items,” he added.
Under House Bill 6993 authored by Salceda, luxury taxes will be increased from 20 to 25 percent on top of all other taxes being collected by the government.
He said the government could generate P15.5 billion annually if the raise will be imposed particularly on non-essential goods including luxury watches, luxury cars, private jets, sale of residential properties above P100 million, beverages priced at over P20,000 and leather goods costing above P50,000.
Salceda said the country’s tax system is flawed because it has not taxed the rich, and this “failure exacerbates inequality and promotes the concentration of financial resources crucial to the economy in the hands of very few individuals.”
Meanwhile, Marcos said optimizing tax collection, which entails maximizing digitizalition efforts, means more projects that will benefit more Filipinos.
“Kasama na diyan ‘yung mga bagong sistema, kasama na diyan ‘yung digitalization na ginagawa at ang mas masigasig na paghabol sa mga businesses at para matiyak naman na ‘yung buwis na kailangan bayaran ay nababayaran lahat,” he said.
(That includes the new systems; that includes the digitalization that is being done and the more diligent pursuit of businesses and to ensure that the taxes that need to be paid are all paid.)
“Kami naman sa panig -- sa Executive -- ay sinasabi namin asahan naman ninyo na kung ano man ang makolekta galing sa taong-bayan, galing sa mga negosyo ay asahan naman ninyo ito’y talagang mapupunta para sa ikabubuti ng ating ekonomiya, para sa pagpaganda ng buhay ng ating mga kababayan,” he added.
(We on the side -- in the Executive -- are saying that you should expect that whatever is collected from the people of the town, from the businesses, you should expect that it will really go for the good of our economy, for improving the lives of our countrymen.) (SunStar Philippines)