The Department of Finance (DOF) is preparing to offset revenue losses from proposed middle-class income tax relief by raising excise taxes on sin products, imposing new charges on single-use plastics, and introducing a wealth tax on luxury automobiles, according to a report by Philstar Biz.
The measures are part of a broader fiscal package designed to keep the government’s revenue targets intact while easing the tax burden on middle-income earners. The DOF is expected to present the proposals to Congress as part of the next administration’s tax reform agenda.
Industry observers note that the proposed taxes on sin products and single-use plastics align with public health and environmental goals, while the luxury car tax targets high-net-worth individuals. The plan is still subject to legislative approval, with details on rates and income brackets to be finalized in the coming months.