Metro Manila (CNN Philippines, October 12) — Lawmakers have filed a bill that seeks to exempt basic commodities from the 12% value added tax (VAT) in order to help ease the economic burden of ordinary Filipinos.
Under House Bill 5504, Assistant Minority Leader and Gabriela Party-list Rep. Arlene Brosas, ACT Teachers Party-list Rep. France Castro, and Kabataan Party-list Raoul Manuel are pushing for the removal of VAT on the importation and sale of bread, raw and refined sugar, canned goods, instant noodles, biscuits, cooking oil, salt, laundry soap and detergents, firewood and charcoal, candles, and drugs tagged as “essential” by the Health department.
“Removing the 12% VAT on basic goods consumed by poor families on a regular basis will dramatically ease their economic suffering amid skyrocketing prices, massive joblessness and depressed wages,” Brosas said in a statement on Wednesday. “Kung ₱100 ang presyo ng kada kilo ng refined sugar halimbawa, ₱12 agad ang mababawas sa presyo nito [For example, if a kilo of sugar costs ₱100, ₱12 will immediately be deducted].”
“Instead of asking consumers to control their purchases, it is the government’s responsibility to provide concrete solutions to address high prices,” she added. “Ito dapat ang gawing prayoridad sa halip na iratsada ang mga panukalang walang kinalaman sa pagkalam ng sikmura ng mga mahihirap [This should be prioritized instead of pushing for proposals that are not related to hunger that the poor experience].”
Revenues lost under the proposed VAT exemption will easily be recovered by imposing a wealth tax on the richest Filipinos, Brosas said.
