"We are definitely counting on the increasing cash dividends paid by listed companies to shareholders as well as the brisk trading in equities to build up tax revenues," he said.
He said dividends are subject to a 10 percent final tax, except those paid to tax-exempt entities such as the Social Security System and the Government Service Insurance System.
"Dividend tax revenues are really a bonus. This is because dividends are paid out of earnings that have already been subjected to corporate income taxes," he said.
The Cebu congressman cited Philippine Long Distance Telephone Co. (PLDT), which plans to pay shareholders P19.2 billion in dividends.
The amount is equivalent to 60 percent of PLDT’s projected P32-billion net income this year. Last year, the company paid 40 percent of its net earnings as dividends. Next year, it is planning to allocate 70 percent for dividends.
Gullas said the government should be earning nearly P2 billion in dividend taxes from PLDT alone this year.
He also cited Cebu Holdings, which paid its first-ever dividend worth P96 million this month.
An affiliate of Ayala Land, Cebu Holdings owns Cebu Business Park and other huge property development projects in Cebu.
Apart from dividend taxes, the government collects stock transaction and documentary stamp taxes on traded equities, as well as a value added tax on broker commissions.
Gullas said in the case of PLDT, a total of P85.8-billion worth of shares have been traded on the local stock exchange since January this year.
He said the robust stock market benefits not only the government and investors but listed companies as well.
"Buoyant stock prices have enabled listed companies to raise fresh capital by issuing new shares. Obviously, these share floats might have been difficult if not impossible had stock prices been depressed," he said.
He added that since January, listed firms have raised some P31.5 billion in fresh capital from the stock market. — Jess Diaz