• THERESA MAE DULMAN
Bacolod Councilor Caesar Distrito stated on Tuesday that lowering the value-added tax (VAT) from 12 percent to 10 percent is the most effective form of aid that directly benefits the public.
Through a resolution authored by Distrito, the Sangguniang Panlungsod expressed their support to House Bill No. 4302 that seeks to lower VAT from 12 to 10 percent.
“In a unanimous decision the SP passed the resolution and we believe that this proposal is the right aid since all of us are paying and every product has VAT,” Distrito said.
According to law, VAT is an indirect tax imposed on goods and services under the Expanded VAT Law.
The councilor said that by lowering the VAT, an ordinary family can save an estimated amount of P1000 per month.
Distrito emphasized that this initiative is a real help to the people.
“It will not be a loss since the purchasing power of every family will improve,” he said.
Based on the resolution, the Philippines has the highest VAT rates in Southeast Asia, with Singapore charging 8 percent, while Thailand and Malaysia only imposing 7 percent.
The House Bill No. 4302 is authored by Batangas First District Representative Leandro Leviste, citing that it should be the top bill in the 20th Congress.
The lawmaker stated that cutting the VAT is a progressive tax reform.*
