Lacson wants VAT rate back to 10%

Senator Panfilo Lacson wants to cut the value-added tax (VAT) rate back to 10 percent from the current 12 percent.

In an interview Wednesday, Lacson said his proposal was included in the individual amendments he submitted to the Senate ways and means committee on the pending tax reform bill.

“Among my proposed individual amendments is to reduce the VAT rate from 12 percent to 10 percent,” Lacson said, noting that his proposal will generate up to P117 billion.

To compensate for the expected losses from the reduction of VAT rate, Lacson said the existing 143 tax exemptions should be limited to 78.

“Kanya-kanya kasi, mga congressmen, senators, may advocacy. Ang iba gusto paboran ang housing, cooperatives, kanya-kanya. So makaraan so many special laws passed, dumami ng dumami ang exemptions,” Lacson said. 

“Ang nag-suffer ang VAT, ang nag-suffer in the long run, tayo. Kasi ang tagal na natin, 2006 pa yang nagbabayad tayo ng 12 percent… Dapat malaki ang ating nakokolekta sa VAT pero dumami nang dumami naman ang special laws na naipasa na ine-exempt ang napakaraming mga interest.” 

Bur exemptions covering food, agriculture, health, and education will be retained, he added.

Lacson hopes his colleagues in the Senate and House lawmakers will support his proposal.

“I hope suportahan nila kasi may mga kasamahan ako siyempre advocacy nila, housing, cooperative, power. I just hope tingnan nila ang the bigger picture,” he said.

Lacson said his proposal to cut the VAT rate is “most welcome” to Senator Ralph Recto, the principal author of the expanded value-added tax (EVAT) law implemented in 2006.

He said his proposal will also help the reelection bid of Senator Sonny Angara, chairman of the Senate ways and means committee.

“Sabi niya wala siyang nakikitang problema. Sabi ko nga sa kanya, political ito. Tatakbo siya sa 2019. Ikaw ang chairman ng ways and means. You can just imagine sa iyo make-credit ang reduction from 12 to 10, siguradong panalo ka,” Lacson said.

“Si Ralph Recto natalo from 10 to 12. Di ganoon ang reason pero nakita nya rin ang wisdom,” he added, referring to Recto’s loss in the 2007 senatorial elections. —LBG, GMA News