Beauty

Facials, Laser Treatments, Fillers, and More to Be Included in New Tax Reform Bill?

The tentative new tax isn't going easy on the beauty industry.
IMAGE COLLAGE BY SANDY ARANAS
Comments

Beauty comes with a price, and its price in the Philippines just got steeper. The Senate has filed a bill to reform the Tax Reform for Acceleration and Inclusion (TRAIN) that includes excising an additional 20 percent of taxes on cosmetic surgery. Under section 30 of the amendment, "cosmetic surgeries, procedures, and body enhancements undertaken for aesthetic reasons” are filed under Non-Essential Goods and Services, which, among other goods, are subject to the tax adjustment.

Initially, this was thought to only include beauty procedures that require surgery, but our insider sources from ambulatory clinics say that this will also target the prices of basic, non-surgical beauty procedures, such as facials, fillers, laser and anti-aging treatments, and skin whitening procedures, among many others. This would mean a significant surge in prices for the services offered by well-known ambulatory aesthetic clinics such as the Belo Medical Group, The Aivee Clinic, Dr. CRB, and The Skin Inc., among other establishments in the metro.

Since the first mention of this reform, many have stressed that those most unjustly affected by this tentative tax would be the female market. Initially, it seemed that the reform is meant to target the upper classes by labeling these beauty treatments as “non-essential goods”–classified as luxuries and grouped together with luxury yachts, jewelry, and perfumes. The tax reform, however, could affect a diverse group of customers, regardless of socioeconomic status, age, and gender, according to a beauty executive. A huge market for these ambulatory clinics are overseas Filipino workers, as well as both men and women who work in fields where aesthetics is a requirement. Of course, there are also those who save up–some even take years–to treat their conditions such as severe acne, scarring, and more.

The table below illustrates ballpark figures of starting prices at upscale clinics and how the hypothetical 20 percent will reflect on those prices.

ADVERTISEMENT - CONTINUE READING BELOW

It seems that the only ones exempted, for now, are those seeking reconstructive surgery for medical purposes, including breast reduction in the case of a cyst, or repair due to disease, burns, trauma, infections, or congenital disorders, such as a cleft lip or palate.

PhilStar reports that possible revisions and final deliberations will be made when sessions resume in November. President Duterte seeks to have the law signed by December 15.

The amendment, prepared by the Committee on Ways on Means and authored by 14 senators, seeks to enable the reform bill as an accelerated solution to enable the government to fund an infrastructure program worth P8 trillion.

Comments
View More Articles About:
About The Author
Hannah Lazatin
Senior Staff Writer
Hannah is a communications graduate from Ateneo de Manila University. She’s originally from Pampanga and from a big, close-knit family who likes to find a reason to get together at the dinner table. Experiences inspire her. “Once, at a restaurant, I received an interpretation of my second name ‘Celina,’ and it meant 'someone who tries everything once' and that is me through and through,” she says. As for the job, she wants her “readers to be inspired by the stories of the people we feature and to move them to reach for greater things.”
View Other Articles From Hannah
Comments
Latest Stories
 
Share
These Filipino designers make furniture that can stand the test of time.
 
Share
Inside details on the flat that the Middleton sisters called home in their single days.
 
Share
Add a touch of timeless sophistication to your home bar.
 
Share
A new book reveals unforgettable presents from an author's very famous friends.
 
Share
From bows and architectural detailing, the major red carpets of 2018 were not lacking in glamour.
 
Share
 
Share
New shopping destinations, exhibitions on display, and experiences waiting to be had at America's most vibrant city.
 
Share
Meghan's acting career is the gift that keeps on giving.
 
Share
Watch fireworks in Rio, participate in medieval Icelandic traditions, or ring in 2019 on one of Manila's best rooftop bars.
 
Share
She's up against Donald Trump, Robert Mueller, and Christine Blasey Ford, to name just a few.
Load More Articles
CONNECT WITH US