MANILA, Philippines—Sen. Loren Legarda has proposed a one-time wealth levy on "ultra rich" Filipinos to ensure that those capable of absorbing the effects of the oil crisis will contribute more in addressing the problem.
Legarda said this is one of the key features of Senate Bill (SB) 2020, or the Bayanihan 3: Power to the People Act, which she filed as the global oil crisis pushed up the cost of fuel, electricity, food, and other essentials.
The senator on Monday said SB 2020 introduced a one-time Solidarity Wealth Contribution (SWC) levy on "ultra-high-net-worth" individuals with wealth exceeding ₱1 billion.
Legarda said the levy "is tiered and progressive," with one percent imposed on assets above ₱1 billion, two percent above ₱2 billion, three percent above ₱3 billion, and four percent above ₱4 billion.
In a statement, Legarda said the SWC is part of a four-pillar progressive tax package designed to "ensure burden-sharing and raise revenues for the crisis fund."
Alongside the wealth levy, the bill requires the Executive department to look into the possibility of imposing a "windfall profit levy" of up to 15 percent on extraordinary crisis-related profits of public utilities and corporations in energy, transport, and water.
"Structured as a one-time emergency measure, the contribution ceases upon termination of the national emergency unless otherwise provided by Congress," Legarda said. "Primary residences and assets directly used in active business operations may qualify for exemptions under implementing guidelines.”
