Mass housing projects worth P2 million and below outside of Metro Manila will continue to enjoy value-added tax exemption under the Senate version of the Tax Reform for Acceleration and Inclusion (TRAIN) bill.
The Housing and Urban Development Coordinating Council estimated that the total housing needs of the country would reach 6.58 million between 2017 and 2022.
“The Senate opted to keep the VAT exemption so as not to exacerbate the housing problem of the country,” said Senate ways and means committee chairman Edgardo Angara Jr.
The original proposal of the Finance Department sought to remove the VAT exemption of both socialized housing, which is priced at P450,000 and below, and of low-cost housing as part of c a move to broaden the VAT base.
The Senate version retained the VAT exemption of all socialized housing both in and outside Metro Manila.