Albay 3rd District Representative Raymond Salceda is proposing the abolition of the country’s estate tax, arguing that inherited properties should only be taxed once they are sold.
House Bill 6553 removes the requirement for families to pay estate tax upon inheritance and instead shifts taxation to capital gains tax at the point of sale.
Salceda said the current system unfairly burdens ordinary families, while the wealthy can easily avoid the tax.
“Madali naman pong makatakas sa obligasyon ang mga mayayaman kasi karamihan ng yaman nila ay nakalagay sa corporation… Ang naiiipit ay ang ordinaryong pamilyang Pilipino,” he noted.
He added that estate tax revenues are minimal compared to the delays they cause in property transfer.
“Nasa ₱14 billion lang po ang koleksyon ng BIR sa estate tax taon taon. Pero ang pinsala na dulot nito ay mas malaki… Tingin po ng ating staff estimates, nasa ₱78 billion po ang tama sa epekto nitong delayed ang estate transfer,” he said.
Salceda also stressed that grieving families should not be pressured to settle estate obligations immediately.
“Kapag namatayan ka may oras ka pa bang mag-asikaso ng estate… They need space to recover, not pressure to produce cash for a tax that appears only because someone died,” he added.
He said abolishing the tax would simplify processes, removing the need for E-CAR during inheritance.
“The E-CAR for estate transfer will no longer be required… E-CAR will only be necessary at the time of first transfer,” he explained.
Salceda believes the Department of Finance may support the proposal, saying, “Tingin ko po, sasang-ayon din dito si Secretary Frederick Go ng DOF. The goal is a tax system that is fair, humane, and easy to comply with.”
He maintained the measure would be revenue-neutral, with potential gains as more properties enter the formal market.