TLDR
- Rep. Junard Chan proposed raising taxes on online gambling during a House ways and means committee session.
- The extra revenue would help fund a plan to raise the personal income tax exemption to P350,000.
- The Department of Finance says the tax relief plan could cost P60 billion in lost revenue each year.
- Lawmakers also debated a proposed tax on sugar-sweetened drinks and whether it would hurt working families.
- Other proposals included raising the tax exemption to P600,000 and cutting corruption at the Bureau of Customs.
A Philippine lawmaker has proposed raising taxes on online gambling. The plan would help pay for a new income tax relief bill.
Representative Junard Chan made the proposal during a House ways and means committee session. The meeting focused on raising the personal income tax exemption to P350,000.
Tax Relief Plan and Revenue Gap
The income tax exemption increase follows an instruction from President Ferdinand Marcos Jr. He raised the idea during his fifth State of the Nation Address.
The Department of Finance says the plan could cost the government P60 billion in lost revenue each year. Officials are looking for new ways to cover that gap.
The DOF has suggested taxing sweetened drinks, e-cigarettes, distilled liquor and single-use plastics. Chan asked if online gambling taxes could also be raised.
He asked DOF Undersecretary Karlo Fermin Adriano if the department had studied higher taxes on online gaming. Chan said the activity carries social risks and deserves a closer look.
Adriano said the DOF is reviewing all proposals from Congress. He added that the department will study the idea further.
Debate Over Sweetened Beverage Tax
Chan also raised concerns about a planned tax on sugary drinks. The plan includes a P20 per liter tax on sweetened beverages and a P40 per liter tax on drinks made with high fructose corn syrup.
He said these drinks are no longer treated as luxury items. Many working and middle class Filipino families buy them regularly.
Chan asked if the new tax would raise daily costs for the same people the income tax relief is meant to help. Adriano responded that sugar intake has been linked to rising rates of obesity and chronic kidney disease.
Adriano acknowledged that most Filipinos drink sweetened beverages often. He said the products still carry health risks despite their popularity.
He added that revenue from the excise tax would fund the public health care system. He described the plan as a way to support both health and public services.
Albay Representative Cielo Krisel Lagman asked why 3-in-1 coffee is left out of the proposed tax. She noted the drink contains more sugar than the World Health Organization recommends.
Adriano said poor families often rely on 3-in-1 coffee to fight hunger. Lagman said those same families would face the health effects and asked the DOF to reconsider the exemption.
Kamanggagawa party list Representative Eli San Fernando suggested other options. These included raising the tax exemption to P600,000 and adjusting the threshold for inflation every three years.
San Fernando also asked about reducing losses at the Bureau of Customs and cutting corruption to help offset lost revenue. Adriano said the DOF supports anti-corruption reforms but said new revenue measures are still needed.
