Speaker Edmund S. Villagomez, center, acting House Floor Leader Ralph N. Yumul, left, Vice Speaker Joel Camacho, right, and Rep. Angelo Camacho, second right, confer with House legal counsel John Bradley, back to the camera, during a House session on Friday. Also in the photo is House clerk Linda Muna.
A MAJORITY of the House members do not support the administration’s proposal to increase the business gross revenue tax, but they are willing to consider a 3% tax on construction contractors, House Ways and Means Committee Chairman Ralph N. Yumul said on Friday.
The proposed tax will be imposed on contractors earning $250,000 or more from construction activities funded by capital improvement project or CIP monies.
“That’s something the members may consider,” Yumul said.
He said the construction tax proposal is “projected to generate $8 million” in fiscal year 2024.
Ways and Means is still drafting the bill which, Yumul said, will exempt the construction of single-family dwellings.
The committee is also proposing to defund vacant government positions and reduce the budgets for the Senate and House leaderships to $100,000 each from $200,000 each.
Finance Secretary Tracy B. Norita earlier told lawmakers that the BGR tax hike proposal would address the anticipated $9.1 million shortfall in government revenue in FY 2024.
Among the House members who said they will not support the BGR tax hike are Speaker Edmund S. Villagomez and Rep. Vince Diego F. Camacho.
