HB05636: Enacted into law "RA10963" on Dec. 19, 2017 | AN ACT AMENDING SECTIONS 5, 6, 24, 25, 27, 31, 32, 33, 34, 51, 52, 56, 57, 58, 74, 79, 84, 86, 90, 91, 97, 99, 100, 101, 106, 107, 108, 109, 110, 112, 114, 116, 127, 128, 129, 145, 148, 149, 151, 155, 171, 174
This bill aims to enhance the progressivity of the tax system through the rationalization of the Philippine internal revenue tax system, thereby promoting sustainable5 economic growth. It also seeks to ensure that the government can provide for the needs of those under its jurisdiction and care through the provision of better infrastructure, health, education,6 and social protection for the people.7 The bill proposes to amend various sections of the National Internal Revenue Code of 1997 to achieve these goals. Some of the key amendments include:
• Adjusting the individual income tax rates to make the tax system more progressive.
• Imposing a 12% value-added tax on the sale of goods or properties.
• Increasing the excise tax on petroleum products to generate additional revenue for the government.
The most beneficial provision of this bill is the adjustment of individual income tax rates, which is expected to provide a fairer tax system and improve the levels of disposable income for a greater number of taxpayers.