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House panel mulls higher duties on luxury goods, but sees problem in 'billionaire tax'

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<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt=" High rises at the Bonifacio Global City. Jonathan Cellona, ABS-CBN News" src="https://sa.kapamilya.com/absnews/abscbnnews/media/2023/news/01/17/20220324-urban-farm-bgc-jc-8.jpg"/><figcaption>High rises at the Bonifacio Global City. <em>Jonathan Cellona, ABS-CBN News</em></figcaption></figure></div><p>MANILA - The House of Representatives tax policy body is looking to impose higher taxes on more luxury items, but is not keen on a proposal to tax multi-millionaires and billionaires.</p><p>The House Committee of Ways and Means said it may add wristwatches, bags, and other leather items worth above P50,000 to the list of non-essential goods. </p><p>Private jets, luxury cars above P5 million, the sale of residential properties above P100 million, beverages above P20,000 per bottle, and traded paintings above P100,000 may also be included, among others, according to Committee Chairman and Albay Representative Joey Salceda. </p><p>“The committee will definitely pass a measure expanding that list, but we will discuss which items can generate the most revenue for the least effort,” Salceda said in a statement.</p><p>Salceda said Section 150 of the tax code, as amended, currently imposes a 20 percent tax on the price of jewelry, perfumes, and yachts. The possibility of raising this tax to 25 percent or 30 percent is also under consideration by the committee, according to the lawmaker.</p><p>“For now we are disposed towards retaining the rates. But an increase to 25 or 30 percent is also under consideration,” he added.</p><p>Salceda however said that a wealth tax on billionaires may be difficult to implement.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/04/06/22/manny-villar-remains-philippines-richest-man">Manny Villar remains Philippines&#x27; richest, net worth at $8.3 billion: Forbes</a></li></ul><p>“It’s a morally sound idea, but it could be impractical. Net wealth is very mobile and our richest could simply apply for a different citizenship from countries happy to take their wealth, or move their wealth elsewhere, to the detriment of our investment-hungry economy,&quot; he said. </p><p>Taxing luxury consumption and immovable property such as high-value land (the Forbes Parks of this country) is much easier since these taxes are much harder to avoid. It also won’t cause the rich to move the rest of their capital away,” he said.</p><p>The lawmaker said that the correct valuation of real property in the country is an essential step in ensuring that the rich are taxed properly.</p><p>“Instead of taxing highly mobile or movable capital such as cash, stocks, bonds, and other financial instruments, we can tax luxury real assets better. And we won’t have to create new taxes, because we are supposed to value those properties correctly anyway,” Salceda said.</p><p>International NGO Oxfam recently called on the government to impose a “wealth tax” to address inequality, noting that in the Philippines, the nine richest Filipinos have more wealth than half of the entire population.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/01/16/23/9-richest-pinoys-wealthier-than-half-of-ph-population">9 Filipino billionaires wealthier than 55 million Pinoys: Oxfam report</a></li></ul><p>“Inequality experienced in the Philippines is starker with the 9 richest Filipinos having more wealth than the bottom half (55 million) of the population,&quot; said Oxfam Pilipinas Executive Director Erika Geronimo, citing Forbes’ Billionaires List and official data analyzed by Oxfam.</p><p>According to Oxfam Pilipinas, based on the Forbes Billionaire List as of November 2022, the 9 richest Filipinos had a combined wealth of $30 billion. </p><p>This is higher than the combined wealth of the bottom 50 percent of Filipinos (roughly 55 million individuals) at $28.29 billion, based on World Inequality Database figures.</p><p>Geronimo pointed out that if a wealth tax is imposed on Filipino millionaires, the country could raise $3.8 billion a year. </p><p>“This amount is enough to increase our health budget by two-fifths,” she said.</p><p>Progressive lawmakers previously filed House Bill 258, seeking to impose 1 percent tax on the wealth of individuals exceeding P1 billion, 2 percent tax on the wealth of individuals exceeding P2 billion, and 3 percent tax on the wealth of individuals exceeding P3 billion.</p><p>For former Internal Revenue Commissioner Kim Henares, proposals to impose a wealth tax appear to be in line with the principle of taxation, but implementing it may be a challenge.</p><div><strong>RELATED VIDEO</strong></div><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=2422358" width="100%"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div><div><br/> </div>

The House tax policy body is looking to impose higher taxes on more luxury items but is not keen on a proposal to tax multi-millionaires and billionaires.