or house and lots worth at most P2,500,000 monthly lease of residential units at most P15,000; books and mass media publications (e.g. newspaper and magazine); transport services by non-Philippine carriers; cargo vessels and aircraft; financial services; sales to senior citizens and persons with disability; from 2019, drugs prescribed for diabetes, high cholesterol and hypertension; and, annual sales of any other goods or services not exceeding P3,000,000. Percentage tax Percentage tax is a business tax imposed on persons or entities/transactions: who sell or lease goods, properties or services in the course of trade or business and are exempt from value-added tax (VAT) under Section 109 (w) of the National Internal Revenue Code, as amended, whose gross annual sales and/or receipts do not exceed Php 3,000,000 and who are not VAT-registered; and, engaged in businesses specified in Title V of the National Internal Revenue Code. Excise taxes Excise taxes apply to goods manufactured or produced in the Philippines for domestic sales or consumption or for any other disposition and to things imported. Local taxes Real property tax One of main sources of revenues of the local government units is the real property tax, which is a tax imposed on all types of real properties including lands, buildings, improvements, and machinery. References Economy of the Philippines