Angara says DOF scrapped proposal to limit VAT exemptions of seniors, PWDs

The Department of Finance (DOF) has scrapped its earlier proposal to limit the tax perks enjoyed by senior citizens and persons with disabilities (PWDs), Senator Sonny Angara said Tuesday. 

Angara, chairman of the Senate committee on ways and means, said the DOF presented to him the revised version of its tax reform proposal, which, among others, keeps the value added tax (VAT) benefits of seniors and PWDs. 

“Nakinig sila sa mga mambabatas and removed that from the package…The [VAT] exemption will stay,” Angara said in a text message. 

“Patuloy po tayong makikipag-ugnayan sa ating mga economic manager para makabuo ng isang komprehensibong tax reform program na patas, progresibo at hindi magiging pabigat sa ordinaryong Pilipino,” Angara added. 

DOF’s initial proposal seeks to expand the VAT base by limiting exemptions to raw food, education and health thus repealing laws exempting senior citizens and PWDs from VAT.

The proposal met opposition from senior citizens and PWD groups during the DOF’s presentation before Angara’s committee last October. 

Approximately 7.5 million senior citizens and 1.4 million PWDs are entitled to such perks at present. 

Angara said he will continue to conduct more public hearings on the comprehensive tax reform program to get significant data and hear the comments of various stakeholders.

The next Senate committee hearing on the tax reform program is tentatively set on January 25. — RSJ, GMA News