Lacson: VAT law could be reviewed to provide subsidy fund amid spike in fuel price

Presidential candidate and Senator Panfilo Lacson on Wednesday suggested a review of the law imposing a 12% value added tax (VAT) to generate funds for a subsidy program amid the spike in fuel prices.

“Kung gusto natin mag-embark ng subsidy fund e i-revisit natin ang VAT Law,” Lacson said at a press conference in Camarines Norte.

(If we want to embark on a subsidy fund, we should revisit the VAT Law.)

He made the suggestion as he explained that subsidy programs are being funded only by the annual national budget.

Currently, Lacson said the Philippines has the highest VAT rate among countries in Southeast Asia.

While the country has the highest rate, he emphasized that the Philippines also has the highest number of lines of exemption.

“Ang problema napakamaraming exemption, maraming privileged individuals at establishments ang nag-eenjoy. Tayo ang may  pinakamarming exemptions. Pagsama-samahin mo ‘yung lines of exemptions in the whole of Southeast Asia, mas marami pa rin ang Philippines,” he said.

(The problem is we have a lot of exemptions. Privileged individuals and establishments are enjoying this. We have the highest number of exemptions in the whole of Southeast Asia.)

Lacson recalled that during the deliberations on the Tax Reform for Acceleration and Inclusion Law, he proposed to cut the VAT rate to 10% if lieu of the reduction of lines of exemption.

He said the government could have generated around P117 billion if they followed his proposal but he was outvoted by his colleagues in the Senate.

“Ang proposal ko ibaba natin ng 10% from 12%. Parusa e, 12% yung patong sa lahat ng binibili natin sa lahat ng serbisyo na binibayaran natin. Gawin nating 10% pero bawasan ang lines of exemption,” he said.

(My proposal back then is to cut the VAT rate to 10% from 12% because it is really a burden. We are paying 12% VAT for all products and services. We should cut it 10% but we should also reduce the lines of exemption.)

“Naka-gain sana ang TRAIN 1 ng P117 billion. Ang target ng train 1 noon ang nakuha lang P82 billion,” he added.

(The TRAIN 1 law could have generated P117 billion. What the government collected from TRAIN 1 was only P82 billion.)

Lacson and his running-mate, Senate President Vicente Sotto III, previously said that subsidizing the public transportation sector is more doable than providing fuel subsidy.

Lacson made the remark as he opposed a proposal from fellow presidential candidate Ferdinand Marcos Jr.’s camp to revive the Oil Price Stabilization Fund (OPSF).

He said the public transportation subsidy could be funded by billions of public funds which were supposedly lost to corruption.

Earlier in the day, Malacañang on called on Congress to review the oil deregulation law following the weekly increases in oil prices and the ongoing situation in Ukraine that is expected to have an economic impact on the Philippines.

Bicol sortie

The Lacson and Sotto tandem started the Bicol leg of their Eleksyon 2022 campaign on Wednesday.

They visited Daet, Camarines Norte where they met Governor Edgardo Tallado— who earlier expressed support to Marcos and Davao City Mayor Sara Duterte’s candidacy.

When asked about this, Lacson reiterated that their ticket is not seeking any endorsements and he also mentioned his friendship with Tallado.

“The mere fact that we are here right in the capitol building at sinamahan niya kami dito (and he accompanied us here), it says something,” he added.

For his part, Sotto said their personal relationship with Tallado has more weight than his endorsement.

“Mas mahalaga ang salitang pinagsamahan kaysa sa salitang endorsement (The word friendship is more important than the word endorsement),” he said.

According to the data of the Commission on Elections (Comelec), Region V or the Bicol Region, has 3.9 million voters for Eleksyon 2022.

Of the said number, Camarines Norte has 384,871 registered voters.

The Bicol Region is also considered the bailiwick of Vice President Leni Robredo, who is also seeking the country’s highest post in the upcoming polls.

Despite this, Lacson said “at the end of the day, it’s the individual voter who will choose [his or her candidate].” — RSJ, GMA News