Tax the billionaires more? Lawmaker revives ultra-wealth tax proposal

Measure seeks to shift the burden away from ordinary taxpayers, raise funds for healthcare, housing, and education.

Calls to tax the country’s wealthiest individuals more have resurfaced after lawmakers renewed their push for an ultra-wealth tax targeting billionaires and other ultra-wealthy Filipinos.

Currently, the country’s tax structure places a “disproportionate burden” on ordinary Filipinos through consumption-based taxes that affect nearly everyone, regardless of income level. Economists argue that low- and middle-income households, who already struggle with high costs of living, feel the effects of taxation more.

To address this, Mamamayang Liberal Party-list Rep. Leila de Lima is pushing House Bill No. 9274, also known as the Ultra-Wealth Tax Act, which would impose an annual tax on individuals whose net taxable assets exceed ₱1 billion.

Under the proposal, net wealth above ₱1 billion would be taxed at 1%, rising to 2% for wealth above ₱2 billion and 3% for wealth above ₱3 billion. The measure would apply only to a small segment of the population, focusing on the country’s wealthiest individuals.

Funds collected from the proposed tax would be used for public healthcare, education, housing, livelihood programs, and support for local government units.

De Lima said the country’s reliance on consumption taxes often means that workers, consumers, and middle-income earners shoulder a larger share of the burden than those with significant accumulated wealth.

Other lawmakers are also pushing to increase the annual income tax exemption ceiling from ₱250,000 to ₱480,000, which could provide relief to low- and lower-middle-income earners who regularly pay taxes but often receive little assistance during times of crisis.

READ: