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Proposed tax hike on luxury goods needs thorough review: Philippine chamber official

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Jekki Pascual, ABS-CBN News

<p>MANILA - The plan to impose higher taxes on luxury goods needs a thorough review as it could have an impact on the retail segment as well as tourism, one of the country&#x27;s largest business groups said on Wednesday. </p><p>Philippine Chamber of Commerce and Industry President George Barcelon said luxury brands may pull out of the country, which may affect the tourism industry.</p><p>The House of Representatives tax policy body earlier said it is looking at raising the tax on jewelry, perfumes, and yachts to 25 percent from 20 percent, as well as expanding the list of non-essential items.</p><p>Barcelon said if prices of luxury items go up, smuggling and counterfeiting of these items may rise.</p><p>&quot;Ang tendency people will look at it, ipapasok mga products through irregular channel... lalong mawawala revenue natin, legitimate revenue,&quot; he said.</p><p>(Goods will be imported through irregular channels, we will lose more revenues)</p><p>If implemented, the higher taxes on luxury goods must also be temporary, he said.</p><p>An official of luxury car distributor CATS said they have yet the proposal in detail yet, but added that they are confident that the luxury market will continue to thrive.</p><p>&quot;We&#x27;re lucky to be in the luxury segment because it&#x27;s a little bit elastic compared to the mass market, so we&#x27;ll have to see what the government&#x27;s thoughts are first in terms of additional tax they&#x27;re thinking of,&quot; said Francis Ang, COO of CATS.</p><p>The company distributes cars from Mercedes-Benz, Chrysler, Jaguar, as well as motorcycles from Harley Davidson and more.</p><p>Ang admitted prices of cars have risen because of inflation, but he is still seeing a better outlook for the segment this year.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/11/14/22/house-oks-reforms-to-taxes-on-financial-deals-passive-income">House approves reforms to taxes on financial transactions, passive income</a></li>	<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>	<li><a href="https://news.abs-cbn.com/business/01/17/23/house-tax-panel-not-keen-on-billionaire-tax">House panel mulls higher duties on luxury goods, but sees problem in &#x27;billionaire tax&#x27;</a></li></ul><div><strong>RELATED VIDEO:</strong></div><figure class="op-interactive"><iframe height="315" src="https://www.youtube.com/embed/cjOLAeWhV2k?enablejsapi=1" width="560"></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>

The proposed tax on luxury items needs to be thoroughly reviewed as it may impact the retail and tourism industries, an official of a large business group said. 

Proposed tax hike on luxury goods needs thorough review: Philippine chamber official

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Proposed tax hike on luxury goods needs thorough review: Philippine chamber official

Jekki Pascual,

ABS-CBN News

Published January 18, 2023 04:34 PM PHT

Read More:

luxury goods

luxury items

retail

taxation

revenue generation

PCCI

George Barcelon

wealth tax

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