Thursday, September 20, 2007
Bill - Hon. Bridget E. Agbada
Republic of the Philippines
THIRD YOUTH CONGRESS
Baguio City
Introduced by Hon. Bridget E. Agbada
EXPLANATORY NOTE
The Bureau of Internal Revenue is seeking for remedies wherein they can gather resources in order to have sufficient money to answer all the needs and liabilities of the country. One of the solutions most government used is the imposition of taxes on certain areas, personalities, individuals, corporations and many more. The imposition of taxes is being done not just to gather money for the need of our country but also for us to meet and pay gradually all the debts that we have.
Based on Land Transportation Office’s latest (2006) statistic they have an actual record of 5.3 million registered vehicles all over the country approximately 5.83 % increase every year. Out of this 5.3 million a total of 4,362,586 registered vehicles are all under the category of private vehicles and every year an estimated 25 % of this vehicles is being sold. Most of this is contributed by the automobile buy and sell industry.
The profit of these automobile buy and sell business is quite large than we expected. Their profit would range from 5 % - 10 %. Therefore, even though the government will implement such tax it would not affect the buyer and in fact it will not give much harm to the seller.
This Act sought to meet these certain liabilities and along with this public order would be exercise. This is some kind of a give and take relationship though it may hurt the seller a bit. On the part of the government it would be an income generating factor and could help lower the country’s fiscal deficit and pay those debts, while on the part of the seller and the buyer it could help protect their vehicles through certain requirements that will be formulated in transferring the ownership of the vehicle. In this sense, car theft would find it difficult to sell those stolen vehicles.
We have implemented a transfer tax on land titles. The amount of tax is computed through a certain percent of the actual amount wherein the land was sold. The same will be done regarding this Act a 1 % transfer tax would be imposed on those sellers may it be the owner or the automobile buy and sell business man.
In support of the constitutional mandate for the State to “develop a self-reliant and independent national economy effectively controlled by Filipinos” its passage is earnestly requested.
BRIDGET E. AGBADA
THIRD YOUTH CONGRESS
First Regular Session
YOUTH CONGRESS
H. No. ________
Introduced by Hon. Bridget E. Agbada
AN ACT IMPOSING A 1 % TRANSFER TAX ON PRIVATE VEHICLES
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:
SECTION 1. Short Title – “Private Vehicle Transfer Tax”
SEC. 2. Declaration of Policy – The State is mandated to establish a uniform and equitable rule of taxation. Towards this end, it is policy of the State to implement a tax policy that is suited to the social conditions of all sectors of the society for the purpose of accelerating economic growth and development.
SEC. 3. Purpose – to promote sustainable economic growth through the rationalization of the Philippine internal revenue tax system, including tax administration; to provide, as much as possible, an equitable relief to a greater number of taxpayers in order to improve levels of disposable income and increase economic activity; and to create a robust environment for business to enable firms to compete better in the regional as well as the global market, at the same time that the State ensures that Government is able to provide for the needs of those under its jurisdiction and care.
SEC. 4. Implementing rules and regulations – The Department of Transportation and Communication - Land Transportation Office, in coordination with the Bureau of Internal Revenue and the Bureau of Customs, shall promulgate and publish the necessary rules and regulations for the effective implementation of this Act within two months from the date of effectivity of this Act.
SEC. 5 Separability Clause – If any of this Act is declared invalid by t\competent cout, the remainder of this Act or any provision not affected by such declaration of invalidity shall remain in force and effect.
SEC. 6. Repealing Clause. – All laws, presidential decrees, executive orders, rules and regulations, and any part thereof, which are inconsistent with the provisions of this Act, are hereby repealed or modified accordingly.
SEC. 7. Effectivity – This act shall take effect (15) days after its publication in the Official Gazette or in any two newspapers of general circulation, whichever comes earlier.
Approved,Labels: ways and means
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