Package 1

Under Package 1, the Department of Finance proposes the following:

(1) Simplify the personal income tax (PIT) system by decreasing it to six (6) brackets. It increases the take-home pay of most individuals and makes the system fairer and more equitable. The maximum PIT rate shall be reduced 25% over time, except for the highest income earners who will be subject to a top rate of 35% to maintain progressivity.
(2) Reduce and restructure the estate and donor’s tax to a single tax rate of 6%.
(3) Broaden the VAT system by limiting exemptions to raw food and other necessities (e.g. education and health).
(4) Staggered increase of excise tax on all petroleum products and index to inflation.
(5) Update excise tax on automobiles.
(6) Levy a tax on sugar-sweetened beverages.

Disclaimer: Latest available information pending updates from Congress or the Department of Finance.

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