NextGen Day

According to the chairman of the House Ways and Means Committee, the committee is looking at the possibility of imposing non-essential goods taxes on a number of luxury product categories.

Rep. Joey Salceda of Albay stated that this is in response to calls for the Philippine government to levy taxes on the nation’s super-rich from foreign organizations like Oxfam International.

“I can’t go after one particular group of people for what they purport to own. They’ll merely apply for citizenship abroad and transfer their assets to other nations that will be pleased to accept them. However, affluence encourages extravagant lifestyles, or what economists refer to as conspicuous spending. Since they won’t mind paying taxes anyway, we may put them on those products, Salceda remarked.

He stated that a proposal to change Section 150 of the Tax Code, as modified, which now levies a 20% tax on the cost of jewels, perfumes, and yachts, is being considered by the panel.

We’ll talk about what can make the most money with the least amount of work, he said.

He stated that the committee is specifically looking into taxing items like watches, bags, and other leather goods that cost more than PHP50,000, private planes, high-end vehicles that cost more than PHP5 million, sales of residential properties that cost more than PHP100 million, beverages that cost more than PHP20,000 per bottle, and traded paintings that cost more than PHP100,000.

The topic of discussion will typically center on what can be agreed upon as ‘luxury.’ In my opinion, it occurs when a product is out of the vast majority of people’s grasp and is not required for any necessary function “explained he.

He claimed that “a key step in ensuring that we tax the wealthiest fairly” is the accurate value of real estate in the nation.

We can better tax luxury real estate instead of taxing highly mobile or moveable capital like cash, stocks, bonds, and other financial instruments. Additionally, we won’t need to enact new taxes because those assets should already be valued fairly, according to Salceda.

The inequality in the Philippines is more pronounced, according to Oxfam and its affiliate there, with the nine richest Filipinos owning more money than the poorest 55 million people combined.

He concurred that the country’s levels of inequality are “obscene,” not simply in terms of wealth or income, but also in terms of the concentration of economic power.

Salceda cautioned, however, that taxes on much-needed capital will create more issues than they will resolve.

“I want the wealthy to invest their funds in the Philippines’ development and retain them there. Taxing highly mobile assets to drive them out doesn’t help the nation at all “said he.

Taking a fairer portion of income from the wealthy and decreasing tax rates “for everyone else,” he argued, should be the main goals of the reforms.

Salceda stated, “We might be able to start cutting the VAT (value-added tax) for most other things if we can generate more consumption taxes on luxury items. “If we can get enough cash from the purchases of the wealthy, it is most certainly a possibility.”

Save/Share this story with QR CODE

---

Disclaimer

This article is for informational purposes only and does not constitute endorsement of any specific technologies or methodologies and financial advice or endorsement of any specific products or services.

Need to get in touch?

Feel free to Contact NextGenDay.com for comments, suggestions, reviews, or anything else.

---

We appreciate your reading. Simple Ways To Say Thanks & Support Us:
1.) GIVE A TIP. Send a small donation thru Paypal
Your DONATION will be used to fund and maintain NEXTGENDAY.com
Subscribers in the Philippines can make donations to mobile number 0917 906 3081, thru GCash.
3.) BUY or SIGN UP to our AFFILIATE PARTNERS.
4.) Give this news article a THUMBS UP, and Leave a Comment (at Least Five Words).

---

AFFILIATE PARTNERS

World Class Nutritional Supplements - Buy Highest Quality Products, Purest Most Healthy Ingredients, Direct to your Door! Up to 90% OFF.
Join LiveGood Today - A company created to satisfy the world's most demanding leaders and entrepreneurs, with the best compensation plan today.

---