MAKABAYAN bloc lawmakers condemned Thursday the approval on the committee level of the proposed tax reform package being pushed by the Department of Finance (DOF).
The group said the inclusion of other tax-generating measures along with the favorable income tax reduction was a ploy to make the bill appetizing to the public.
For ACT Teachers Partylist Representative Antonio Tinio, the lowering of income tax should have been filed as a separate bill, instead of being lumped into the other tax proposals of DOF.
"This is a matter of correcting an injustice. Dapat ipasa kaagad ang [income tax reduction] at ihiwalay. Unfortunately, sa package na ito, held hostage ang lowering of income tax dun sa imposition of new taxes, and this is why we voted no," Tinio said.
Among the proposed new taxes included in the DOF-drafted bill are the following: excise tax on fuel products like diesel, LPG, and kerosene; excise tax on particular automobiles; expanded value added tax (VAT) coverage; abolishing special laws granting VAT exemptions to several sectors like SUCs and cooperatives.
"Yun yung iniiwasan ng komite, especially the sponsor, to give details on how much yung magiging effect if malilift itong 79 special laws [granting VAT exemptions], because it will create a domino effect of reaction coming from all sectors," Anakpawis Partylist Representative Ariel Casilao said.
Tinio added that the DOF might have accommodated the concerns of luxury car importers, citing the lowering of proposed tax on high-end vehicles.
"Ang ginawa binabaan yung rates for the top-end luxury segments, in other words parang pinakinggan yung concern ng mga importers and distributors of luxury vehicles, dahil baka masyadong mataas yung as much as 200% tax rates in the original proposal," he said.
According to the Makabayan bloc, the tax package appears excessive considering that the potential revenue loss from the reduction of income tax is P140 billion while the income to be generated from new taxes was pegged at P250 billion.
"In other words, hindi lang ito usapin ng pagbawi sa mawawala, talagang may objective na kumita pa nang mas malaki," Tinio said.
The group said they will oppose the said bill once it reaches the plenary.
The first package of the tax reform proposal of DOF was approved by the House committee on ways on means last Wednesday. (VoxPop Philippines)