Business World

House bill seeks to impose wealth tax of between 1i and 3i

- — Russell Louis C. Ku

LEGISLATOR­S from the minority Makabayan bloc filed a wealth tax bill in the House Monday for individual­s with taxable assets of over P1 billion.

House Bill 10253 or the proposed Super-Rich Tax Act of 2021 will impose a tax of 1-3%, depending on the extent the assets exceed P1 billion.

As drafted, the bill proposes a 1% rate on taxable assets exceeding P1 billion; a 2% rate on assets above P2 billion; and a 3% rate on assets above P3 billion.

The bill proposes an effectivit­y date for the tax of Jan. 1, 2022, if passed.

Revenue from the tax is to be used for medical assistance and investment in education, employment, social protection, and housing for poor families.

“This tax would further help shift the burden away from regressive consumptio­n taxes towards the handful of the wealthiest who are capable of contributi­ng more,” according to the bill, whose proponents are mainly from party-list organizati­ons in Congress.

According to Forbes, the 50 richest families and individual­s in the Philippine­s saw their collective wealth rise 30% to $79 billion (P3.94 trillion) during the pandemic.

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