MANILA: As mandated by the Constitution, the Education Department will get the biggest share with ₱553.3 billion. Next are the Department of the Interior and Local Government with ₱170.8 billion, the Department of National Defense with ₱149.7 billion and the Department of Social Welfare and Development with ₱141.8 billion.
The second is the tax reform bill, which Congress ratified on December 13 and is set to take effect on January 1, 2018. Under the measure, those earning ₱250,000 or less a year would be exempt from income tax, while 13th month pay and bonuses up to ₱90,000 would also be tax free.The new scheme will also lower income tax rates for those earning ₱2 million and below. Meanwhile, small businesses with total annual sales of ₱3 million and below are exempt from value added tax. Small and micro businesses represent 98 percent of all registered businesses in the country. Regular and premium unleaded will go up by ₱7 in 2018, ₱9 by 2019 and ₱10 by 2021. Diesel and bunker fuel mostly used for public transportation will also be collected in three tranches: ₱2.50 next year, ₱4.50 in 2019 and ₱6 in 2020. For liquefied petroleum gas, the bicameral conference committee spread the ₱3 increase over three years a peso per year increase from 2018 to 2020. According to the Finance Department, the two million richest Filipino families consume half of the oil products in the country.
Other increases include a tax of ₱6 per liter for beverages using caloric and non caloric sweeteners and ₱12 per liter for beverages using high fructose corn syrup. All milk and coffee products are exempted from sugar tax, as well as natural fruit and vegetable juices and meal replacements. Medically indicated beverages would not be taxed as well.
