AnaKalusugan Party-list Rep. Ray T. Reyes believes lowering taxes on stock transactions could bring in 4.3 trillion pesos in economic value and attract more foreign investors in the country.
“Ayon sa aming mga pag aaral, inaasahang 4.3 trillion pesos in economic value ang darating sa Pilipinas kapag ibinaba ang tax rates sa stock market transactions,” Reyes said.
The solon also said reducing transaction tax is expected to cause an increase in transaction volume and cited the case of Taiwan which reduced its transaction tax from 0.5 percent to 0.25 percent, which resulted in a net effect of 6.33 times in transaction volume.
“These are funds that could greatly contribute to public health investing to ensure that the Filipino people are healthy and have access to adequate healthcare services,” he added.
Reyes filed House Bill No. 9277 which will amend the National Internal Revenue Code and reduce stock transaction tax from six-tenths of 1 percent to one-tenth of 1 percent.
According to the lawmaker, the reduction in friction costs would boost the country’s investor appeal and create more opportunities for active investors.
“Buong bansa ang makikinabang dito dahil mas madaming local at foreign investors ang mahihikayat na ilagay ang puhunan nila sa ating stock market,” Reyes added.
The solon also said reducing transaction tax is expected to cause an increase in transaction volume and cited the case of Taiwan which reduced its transaction tax from 0.5 percent to 0.25 percent, which resulted in a net effect of 6.33 times in transaction volume.
“The case of Taiwan proves how tax reductions can stimulate investment and encourage wider participation in the financial market,” Reyes said.
“By attracting more foreign and local investors, we can realize the potential of the financial sector to help in improving the lives of all Filipinos,” he added.
