Majority not in favor of tax reform proposals – IBON Survey

September 13, 2017

by IBON Foundation

The latest survey of research group IBON showed that majority of Filipinos do not approve of almost all proposals under the first package of the Duterte administration’s proposed tax reform program.

Survey respondents were informed that the government has a proposed tax reform package. They were presented with a list of some of the tax proposals and asked which of these they favor.

Majority of the respondents did not favor the following: the expansion of the value-added tax (VAT) coverage (83.6%); raising of taxes on petroleum products (87.7%); charging of Php10 per liter tax on sugary drinks and increasing annually thereafter (82.2%); imposition of 12% tax on rented dwelling with monthly rate of Php10,000 and below (77.5%); and imposition of 12% tax on remittance fees, such as those from overseas Filipino workers (77%).

On the other hand, 4 out of 10 respondents (41.1%) said that they were in favor of lowering the income tax paid by individuals earning Php21,000-650,000 monthly, while almost the same number (41.3%) were not in favor. Nearly half or 46.6% of respondents said they favor the removal of income tax exemption of minimum wage earners, while 38.3% did not.

The latest IBON Nationwide Opinion Survey was conducted from June 24-30 among 1,420 respondents in 16 regions. The survey employed field interviews and a multi-stage probability sampling scheme with a plus or minus 3% margin of error.

Due to difficulties conducting field interviews in certain areas affected by the Martial Law situation in Mindanao, results do not include the Southern Mindanao Region (Region XI), and 4 out 6 towns in Lanao del Sur province in the Autonomous Region of Muslim Mindanao (ARMM).###

 

The government has a proposed tax reform package wherein the following are some of the proposals. Are you in favor of these proposals?

Expanding the coverage of value-added tax (VAT), which will increase the prices of many goods and services
Yes

 9.3

No

 83.6

Don’t know

 7.1

Total

100.0

Raise taxes on petroleum products, which will increase the prices of many goods and services
Yes

 7.6

No

 87.7

Don’t know

 4.5

No answer

 0.1

Total

 100.0

Charge tax of Php10 per liter of sugary drinks like juice and softdrinks, increasing annually thereafter
Yes

 11.7

No

 82.2

Don’t know

 6.0

No answer

 0.1

Total

 100.0

Impose 12% tax on rented dwelling with monthly rate of Php10,000 and below
Yes

 7.1

No

 77.5

Don’t know

 14.9

No answer

 0.5

Total

 100.0

Impose 12% tax on remittance fee on remittances such as those from overseas Filipino workers
Yes

 9.4

No

 77.0

Don’t know

 13.2

No answer

 0.4

Total

 100.0

Lowering of income tax paid by individuals earning Php21,000-650,000 monthly
Yes

 41.1

No

 41.3

Don’t know

 17.3

No answer

 0.2

Total

 100.0

Removal of income tax exemption for minimum wage earners
Yes

 46.6

No

 38.3

Don’t know

 14.0

No answer

 1.1

Total

 100.0