House OKs bill to cut stock transaction taxes

The House of Representatives approved on Monday a bill to reduce stock transaction taxes in an effort to boost capital markets and investment competitiveness.

House Bill 9277 proposes lowering the stock transaction tax from 0.6 percent to 0.1 percent and reducing the dividends tax rate for non-resident aliens from 25 percent to 10 percent.

The bill also aims to cut the final tax rate for Philippine Charity Sweepstakes Office and lotto winnings, as well as the documentary stamp tax on PCSO lottery and horse-race betting tickets from 20 percent to 10 percent.

Gabriela Party List Representative Arlene Brosas voted against the measure, arguing that it disproportionately benefits a few while exacerbating the imbalance in the country's tax system.

Brosas highlighted the lack of clear ties between capital markets and productive sectors of the economy, emphasizing that domestic enterprises represent only a small fraction of the market.

The lawmaker stressed that continuous tax reductions for corporations are detrimental when ordinary citizens bear heavy taxes and levies, urging any tax-related legislation to prioritize the welfare of the majority.