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In the DOF’s proposed tax measure filed to the House of Representatives ways and means committee, the unnumbered bill seeks to amend the National Internal Revenue Code to impose two tax schedules in 2018 and 2019.

The DOF proposed tax schedule for 2018 is:

  • Not over P250,000 – zero percent
  • Over P250,000 but not over P400,000 – 20 percent of the excess over P250,000
  • Over P400,000 but not over P800,000 – P30,000 + 25 percent of the excess over P400,000
  • Over P800,000 but not over P2 million – P130,000 + 30 percent of the excess over P800,000
  • Over P2 million but not over P5 million – P490,000 + 32 percent of the excess over P2 million
  • Over P5 million – P1.45 million + 35 percent of the excess over P5 million
  • In the DOF’s proposed tax schedule for 2019, the tax for personal income would further go down:
  • Not over P250,000 – zero percent
  • Over P250,000 but not over P400,000 – 15 percent of the excess over P250,000
  • Over P400,000 but not over P800,000 – P22,500 + 20 percent of the excess over P400,000
  • Over P800,000 but not over P2 million – P102,500 + 25 percent of the excess over P800,000
  • Over P2 million but not over P5 million – P402,500 + 30 percent of the excess over P2 million
  • Over P5 million – P1,302,500 + 35 percent of the excess over P5 million

The bill also repealed the tax exemption on 13th month pay and other benefits not exceeding P82,000 in the public and private sector.

Meanwhile, the bill would increase the excise taxes on petroleum products, including imposing new taxes on petroleum products that were previously not imposed with excise tax:


  • Lubricating oils and greases – P10 per liter (from P4.5)
  • Processed gas – P6 per liter (from P0.05)
  • Waxes and Petrolatum – P10 per kilogram (from P3.5)
  • Denatured alcohol – P6 per liter (from P0.05)
  • Naptha, regular gasoline – P10 per liter (from P4.35)
  • Leaded premium gasoline – P10 per liter (from P5.35)
  • Unleaded premium gasoline – P10 per liter (from P4.35)
  • Aviation turbo jet fuel – P10 per liter (from P3.67)
  • Kerosene – P6 per liter (from zero)
  • Diesel fuel oil – P6 per liter (from zero)
  • Liquefied petroleum gas – P6 per liter (from zero)
  • Asphalts – P6 per kilogram (from P0.56)
  • Bunker fuel oil – P6 per liter (from zero)


The DOF’s proposed bill also seeks to repeal the laws that allowed senior citizens and PWDs VAT exemption—Section 4 of the Expanded Senior Citizens Act, and Section 32(a) of the Magna Carta for Persons with Disability.

SOURCE: INQUIRER

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