Cheese in the trap: Salceda eyes higher taxes on private jets, pricey bags

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<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt="A model presents a creation from the Fall/Winter 2023/2024 Collection by Louis Vuitton during the Paris Fashion Week, in Paris, France, 19 January 2023. The presentation of the Men" s="" collections="" runs="" from="" to="" January="" EPA-EFE="" Mohammed="" src="https://sa.kapamilya.com/absnews/abscbnnews/media/2023/news/01/19/louis-vuitton-epa-1202023.jpg"/><figcaption>A model presents a creation from the Fall/Winter 2023/2024 Collection by Louis Vuitton during the Paris Fashion Week, in Paris, France, 19 January 2023. The presentation of the Men&#x27;s collections runs from 17 to 22 January 2023. EPA-EFE/Mohammed Badra</figcaption></figure></div> Instead of scaring the rich with a hefty wealth tax, a lawmaker is proposing to tax luxury goods instead including jewelry and bags, wines and art, cars, private jets, yachts, residences, and others.<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>Albay 2nd District Rep. Joey Salceda warned imposing a wealth tax would only scare off potential investors including billionaires who are already living in the Philippines.&quot;Kapag tinax mo yung wealth, tatakbo yan eh. So anong P200 billion? P200 billion somewhere in the Cayman Islands? I think it is very mobile, may cryptocurrency. We have a bank secrecy law, one of the strictest in the world so how can you find that P200 billion?&quot; he said in an ANC Headstart interview. He cited as an example the world&#x27;s richest man, French luxury group LVMH CEO Bernard Arnault, who is being offered citizenships by several countries so that he would come and stay there. <ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/12/19/22/lvmh-owner-unseats-elon-musk-as-worlds-richest-person">LVMH owner unseats Elon Musk as world&#x27;s richest person</a></li></ul>&quot;I can name you a lot of countries who want rich people to be their citizen. So it&#x27;s contrary. They want rich people to be in their neighborhood for most likely to spend their wealth there, buy villas there and probably invest too by sheer familiary to their surroundings,&quot; he said. Salceda noted the Philippines is offering long-term investor&#x27;s visas to foreign investors who spend as much as $200,000 in the country.<ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/10/23/20/foreigners-with-investor-visas-allowed-in-philippines-starting-nov-1">Philippines to allow foreign investors to enter from Nov. 1</a></li></ul>Instead of a wealth tax, he said the government can just impose a tax on luxury goods, likening it to putting cheese in a mousetrap. &quot;You put cheese in the mousecatcher. I&#x27;d rather catch them when they&#x27;re eating the cheese,&quot; he said.&quot;Luxury watches above P50,000, luxury cars, private jets, sale of residential properties above P100 million. Yung mga wine above P20,000. Do you know that this country is drinking P10.3 billion a year on wine whose per bottle is 20,000? Leather products above P50,000. We are spending P11.3 billion on that,&quot; he added.He said a Louis Vuitton for example could be taxed as much as 32 percent. &quot;We are buying more Louis Vuitton than luxury cars...You have to pay for your conspicuous tendencies,&quot; he said. The House of Representatives tax policy body earlier said it is looking to impose higher taxes on more luxury items, but is not keen on a proposal to tax multi-millionaires and billionaires.<ul class="op-related-articles">	<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>Former BIR Commissioner Atty. Kim Henares also said it would be difficult to impose a wealth tax on the richest 1 percent in the country due to challenges such as the bank secrecy law. <ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/video/business/01/17/23/imposing-wealth-tax-an-uphill-climb-says-ex-bir-chiefhttps://news.abs-cbn.com/video/business/01/17/23/imposing-wealth-tax-an-uphill-climb-says-ex-bir-chief">Imposing wealth tax an &#x27;uphill climb&#x27;, says ex-BIR chief</a></li></ul> For its part, research group IBON Foundation said the proposed tax on luxury products is far inferior to a billionaire wealth tax, saying a billionaire wealth tax can &quot;raise at least P468.8 billion annually from the country’s estimated 2,945 billionaires who collectively have P8.2 trillion in wealth.&quot;<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=2426973" 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>

Instead of scaring the rich with a hefty wealth tax, a lawmaker is proposing to tax luxury goods instead including jewelry and bags, wines and art, cars, private jets, residences, and others.

Cheese in the trap: Salceda eyes higher taxes on private jets, pricey bags | ABS-CBN

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Cheese in the trap: Salceda eyes higher taxes on private jets, pricey bags

Cheese in the trap: Salceda eyes higher taxes on private jets, pricey bags

ABS-CBN News

Published Jan 20, 2023 10:46 AM PHT

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Updated Jan 20, 2023 10:55 AM PHT

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