MANILA, Philippines — President Ferdinand “Bongbong” Marcos Jr. on Tuesday backed the proposal to impose higher taxes on luxury goods, saying it is only “reasonable” to tax the consumption of luxury items.
Marcos was asked about his stance on House Bill No. 6993, which seeks to raise the nonessential goods tax from 20 percent to 25 percent and to expand its coverage to more luxury items.
He explained that the prices of luxury goods are not fluctuating since demand is not changing in any situation and this is why it is only reasonable to impose higher taxes on such products.
“Kung titingnan ninyo, ‘yung luxury items, mga magagarang kotse, mga designer na damit at saka mga bag lahat, hindi nagbabago ang presyo niyan dahil may kaya ang mga bumibili,” the President said in a chance interview in Pasay City.
(If you look at it, the prices of luxury items such as cars, designer clothes and bags do not change because there are people who can buy them.)
“So, I think, it’s just reasonable to tax the consumption side…those consuming luxury items,” Marcos added.
Under the proposed bill, which was filed by House ways and means committee Rep. Joey Salceda, a 25-percent luxury tax will be imposed on wristwatches, bags, wallets, and belts valued at more than P50,000; beverages worth more than P20,000 a liter; antiques valued at P100,000; paintings valued at more than P1 million.
The same amount of tax will also be imposed on automobiles valued at more than P10 million; private aircraft and parts except those for the use of the Philippine government, airlines, and logistics companies; and the sale of residential properties worth above P100 million.
According to Salceda, an estimated sales of P62.1 billion from these luxury goods may bring the government P15.5 billion in additional revenue from the luxury tax.