MANILA - The Department of Finance said it has raised to nearly P300 billion the target net revenues from a tax reform package that it will submit to Congress next week.
The imposition of excise taxes on fuel and cars, the removal of some value added tax exemptions and a new tax on sugary drinks will generate P471.5 billion, Finance Secretary Carlos Dominguez said late Thursday.
This will be offset by P180.3 billion in foregone revenues from the lowering of personal income tax rates, resulting in net revenues of P291.2 billion, higher than than the original P200.7-billion target, he said.
According to DOF data, the government expects to generate P199.6 billion from excise tax on fuel, P166.8 billon from the VAT base expansion, P48.7 billion from sugar tax, P45.5 billion from sin taxes, and P10.9 billion from excise tax on cars.
Income tax rates will be capped at 25 percent for low to middle-income earners while the rate for those earning P5 million and higher will be raised to P35 percent, said finance undersecretary Antonette C. Tionko.
The 32-percent rate will be kept for those earning P3 million to P5 million, he said.