MANILA — ML Party-list Rep. Leila de Lima has filed a measure seeking to impose an annual ultra-wealth tax on the country’s billionaires, particularly those with net taxable assets exceeding P1 billion, citing the need to address inequality and fund social services.

In a media report, it said that House Bill No. 9274, or the “Ultra-Wealth Tax Act,” proposes amendments to the National Internal Revenue Code of 1997 and introduces a tiered tax system on ultra-high net worth individuals.

“Government interventions are therefore necessary to address the rising gap in inequality brought about by massive economic disruptions, coupled with systemic failures, including having a regressive taxation system,” De Lima said in a statement on Sunday.

Under the proposal, the tax will apply only to a small group of taxpayers based on wealth thresholds. The rates would be set at 1 percent for wealth above P1 billion, 2 percent for wealth above P2 billion, and 3 percent for wealth above P3 billion.

The measure also earmarks the proceeds exclusively for public health services, education, local government support funds, social protection and employment programs, and housing initiatives.

“To truly promote social justice and help those in need, we must give our fair share. Isulong ang makatarungan at inklusibong pagbubuwis at gamitin ang pondo ng bayan sa epektibong mga programa at serbisyo na may tunay na pakinabang sa ating mga kababayan,” De Lima said.

A wealth tax was earlier floated by former National Economic and Development Authority Secretary Winnie Monsod amid global economic pressures, including tensions in the Middle East. Malacañang said all proposals are being reviewed, but noted that some European countries have since abandoned wealth tax policies due to complexity and limited revenue gains.