Bam Aquino wants to slash VAT to 10% amid rising prices

Senator Bam Aquino on Thursday filed a measure which aims to reduce the value-added tax (VAT) from 12% to 10% in a bid to help Filipino families cope with the rising prices of goods and services due to the heightened tensions in the Middle East.

Senate Bill No. 2047 seeks to lower the VAT of the gross sales of goods and services, including petroleum products, to 10%, by amending certain sections of the National Internal Revenue Code of 1997.

“Habang tumatagal ang krisis na ito, hindi lang mahirap ang tinatamaan kundi ang ating middle class, kung saan kabilang ang ating mga kababayang naghahanapbuhay ngunit hindi nakakakuha ng direktang tulong mula sa ating pamahalaan,” Aquino said in a statement. 

(As this crisis continues, it is not just the poor who are being affected, but also the middle class, which includes our countrymen who are working but are not receiving direct assistance from our government.) 

“By reducing VAT, we take a concrete step toward making the cost of living more manageable and supporting a more inclusive and resilient economy,” he added. 

P14-B windfall

Senator Francis “Chiz” Escudero, meanwhile, wants the “unexpected windfall” from VAT collections on petroleum products to fund financial assistance for affected sectors. 

“‘Windfall’ lang ang tawag diyan dahil hindi naman planado o pinaghirapan ng gobyerno ang dagdag na koleksyon. Tumaas lang ang presyo ng langis kaya mas mataas din ang VAT na pumapasok. Mas tama na ibalik ito sa mga pinakaapektadong sektor bilang tulong,” Escudero said in a statement.

(It’s only called a ‘windfall’ because the government didn’t plan or work hard for the additional collection. The price of oil surged, that’s why the VAT is also higher. It would be more appropriate to give it back to the most affected sectors to help them.) 

“Kung hindi naman tatanggalin ang VAT, ibalik na lang sa taumbayan ang dagdag o windfall na kita mula rito bilang ayuda,” he added.

(If VAT will not be removed, then the additional or windfall income from it should be returned to the people as financial aid.) 

Earlier, Finance Undersecretary Karlo Fermin Adriano said there will be an additional value-added tax collection of P13 to P14 billion due to higher fuel prices. — JMA, GMA News