House minority blocks Senate bid for tax exemptions on new socialized shelter cost

As the bicameral committee on the tax reform measure puts on the finishing touches for the controversial bill, the House of Representatives minority bloc called on the chamber’s contingent to fight off a Senate

bid to exempt from taxes developers of condominiums and shelters who will be freed from paying an aggregate of 118 billion in annual taxes.

Deputy Minority Leader and ABS Party-list Rep. Eugene Michael De Vera said the Tax Reform for Acceleration and Inclusion (TRAIN) grants tax exemption for shelter units that fall under the definition of socialized housing unit.

De Vera said the Senate version defines socialized housing units as those constructed or sold at 12 million or less.On the other hand, the House sets the cost of a housing unit at 1450,000 -11,550,000 lower than the Senate version.

De Vera lamented that under the Senate bill even condominium units sold to the middle class will benefit from the tax exemptions. That could trigger a rise in the cost of houses, even those meant for the poor, he said.

“Government will lose an estimated 118 billion annually yet only a handful poor families will be benefited,” he stressed.

But he refused to comment on reports of a strong lobby from contractors and developers of condominium and middle income real estate development.

Socialized housing Minority Leader and Quezon Rep. Danilo Suarez vowed to strongly oppose the Senate version of the bill if it will contain the provision for the adjustment of cost of socialized housing units.

Suarez said the socialized housing provision of the Senate measure is equally unacceptable as the senators’ proposal to impose higher taxes on coal.

Coal tax proposal Earlier, Speaker Pantaleon Alvarez supported the House minority bloc’s opposition against the proposed hike in coal tax, saying that the chamber’s stand is non-negotiable.

The Senate contingent in the bicameral panel has reportedly agreed to adopt the House position and was ready to scrap the coal tax proposal.

Last week, Suarez and Senior Deputy Minority Leader and BuhayPartylist Rep. Lito Atienza took turns in assailing the Senate for committing the mistake of drastically amending the tax bill passed by the Lower House.

Suarez said the Senate is barred from inserting a provision in the bill because such act could be considered unconstitutional.

The opposition lawmaker reminded senators that under the Constitution all tax measures must emanate from the Lower House.

On the other hand, Atienza decried the alleged insertion as anti-poor as it will spike electricity rates. He explained that the country relies heavily on coal for its energy needs.

The coal tax is among the contentious issues in the deliberation of the bicameral conference committee on the provisions of the respective versions of the House of Representatives and the Senate of the TRAIN.

Will reject coal tax

Alvarez said the House contingent in the bicameral conference committee will reject the coal tax as part of the TRAIN.

“Hindi po namin papayagan yan; definitely hindi(We cannot permit this, definitely not), said Alvarez in a radio interview.

The Senate approved a 3,000-percent increase in coal taxes to be collected in three tranches until 2020. That means the current 110 excise tax will be raised to 1100 in 2018, 1200 in 2019 and 1300 by 2020. No such tax is included in the House version of the TRAIN.