Senator Risa Hontiveros
PASAY City, Philippines – Senator Risa Hontiveros proposed the lowering of value-added tax (VAT) on products and services from the current 12 percent to 10 percent.
Hontiveros argued that VAT could even be lowered to 8 percent.
“Kapag umabot na sa 4.5 percent share sa GDP, sa collection natin sa VAT, lalo pa itong ibaba sa 8 percent para naman din consistent sa current VAT rate sa ASEAN region,” said Hontiveros.
To date, the proposal remains pending for discussion by the Senate Committee on Ways and Means.
Hontiveros believes it is high time to approve the proposal to counter the rising inflation rate in the country which soared to 4.6 percent in May.
Hontiveros and other critics of the Duterte Administration blame the implementation of the Tax Reform Law for the surging prices of basic goods in the country.
The Department of Finance (DOF) in previous instances said it welcomes any proposal to cut VAT rate in the country only if VAT exemptions are removed.
For his part, Senator Juan Miguel Zubiri suggests that the government should find means to help the sectors affected by the rising inflation rate.
“Strong suggestion to government, let us go back to look on renewable energy and e-vehicles, kasi ang mga umaalma mga transport companies, mga umaalma pasahero at may-ari ng mga sasakyan,” Zubiri said. — Nel Maribojoc / Marje Pelayo