MANILA - Senators lowered the proposed excise tax on sugar-sweetened drinks and reduced the threshold for income tax exemption under their version of tax reform.
The excise tax was lowered to P5 per liter for caloric sweeteners, P3 for non-caloric sweeteners and P10 for drinks containing high fructose corn syrup, a sugar substitute. The House version called for a P10 per liter across the board levy.
The annual income for income tax exemptions was lowered to P150,000 with an additional P25,000 exemption per dependent for a maximum of 4 dependents. The House bill set the threshold at P250,000.
Value added tax exemptions were proposed for senior citizens, persons with disability, business process outsourcing companies, cooperatives, socialized housing, health care and food production.
President Rodrigo Duterte is seeking new revenue sources to offset a reduction in income tax rates and help fund a P8-trillion infrastructure program.