• CHRYSEE G. SAMILLANO
A resolution expressing the full support of the Sangguniang Panlungsod (SP) of Bacolod City to House Bill No. 4302 seeking to lower the Value-Added Tax rate from 12 percent to 10 percent, was approved by the SP on Wednesday.
Authored by Councilor Caesar Distrito, the resolution said the Value-Added Tax (VAT) is an indirect tax imposed on the sale of goods and services in the Philippines, currently set at 12 percent under Republic Act No. 9337, or the Expanded Vat Law.
The current VAT rate has long been considered burdensome to consumers, especially ordinary wage earners, as it significantly increases the prices of basic commodities and essential goods, it said.
At 12 percent, the Philippines has the highest or one of the highest VAT rates in Southeast Asia, with neighboring countries such as Thailand and Malaysia imposing only seven percent, and Singapore at eight percent, making the Philippine VAT comparatively more onerous for its citizens, the resolution said.
House Bill No. 4302, filed by Rep. Leandro Legarda Leviste, seeks to lower the VAT rate from 12 percent to 10 percent in order to provide immediate relief to Filipino families and stimulate economic growth, it said.
Lowering the VAT will not only alleviate the financial strain of Filipino households but also encourage higher consumption, thereby boosting business activities and contributing to a more dynamic local economy, the resolution said.
The City Government of Bacolod and its constituents stand to benefit from the reduction of VAT as it will improve the purchasing power of Bacolodnons, promote inclusive growth, and contribute to better quality of life, it added.*
