Many relatives of coronavirus (COVID-19) victims who died from the disease are asking Congress to pass a legislation that would exempt them from paying estate tax, or at the very least lower the rate.
They said it will be another financial hardship if they will pay the said tax, after already spending their life savings and even selling some of their properties for the hospitalization of their loved ones who ultimately succumbed to the disease.
"It would be a great relief and direct financial support from the government if our wish is granted," said a 65-year-old Quezon City resident who lost both parents from the dreaded illness. He refused to be named.
The pandemic has already claimed the lives of more than 18,000 Filipinos, according to to the Department of Health (DOH).
The estate tax is equivalent to six percent of the total net assets of the decedent. The heirs cannot divide or sell the real and personal properties of the deceased, including bank deposits, unless the tax is settled.
The Tax Code requires the heirs to pay the tax within one year from the death of their relative.
The heirs cannot avail of the lower rates prescribed under the current estate tax amnesty since the law only covers tax liabilities incurred in 2018 and prior years.