MANILA - An increase in the stock transaction tax that took effect at the start of 2018 was unlikely to affect trading, an analyst said Wednesday.
Share prices rose 1.94 percent in late trading Wednesday, the first trading day of the year, 2 days after the first package of President Rodrigo Duterte's tax reform took effect.
This includes an increase in stock transaction tax or STT to 6/10 of 1 percent from 1/2 of 1 percent of every sale, barter, exchange or disposition of shares, according to a memorandum from the Philippine Stock Exchange.
"I don't think it's going to be material in terms of trading volume
assuming the market is going to do well. We think it's going to do well despite this increase," BPI Securities research head Haj Narvaez said.
Online brokerage COL Financial released a sample computation on its Twitter account on the effect of the tax increase.
The sale of 400 Ayala Land shares at P25.65 apiece would now cost P91.83 including commission, from P81.57 under the old rate.
-- report from Isabelle Lee, ABS-CBN News.