Senator Paolo Benigno Aquino expressed support behind the move to reduce value-added tax to 10 percent, saying it would help ease the burden of high prices of goods and services on Filipinos, especially the poor.
“We support VAT reduction and recommendations that would give comfort to families drowning in high prices. It is important that we act on this,” said Aquino, one of four senators who voted against the Tax Reform for Acceleration and Inclusion Law.
While he supports the move, Aquino promises to ensure that the exemptions under the VAT will remain, including those given to cooperatives, senior citizens and persons with disabilities.
“We have to save Filipinos who were hit by the TRAIN law. If the Senate would give priority on VAT reduction, we will support this,” he said.
In the Senate, Senator Panfilo Lacson and Risa Hontiveros have been pushing for the lowering of VAT.
As part of his efforts to ease the burden of the TRAIN Law on Filipinos, Aquino has filed a measure seeking to suspend the collection of the excise tax under the government’s tax reform program once the average inflation rate surpasses the annual inflation target over a three-month period.
In addition, Aquino is pushing for the full implementation of mitigating measures under the TRAIN Law, such as the unconditional cash transfer program for poor families and the Pantawid Pasada for jeepney operators and drivers.
He also filed a resolution calling for an investigation regarding the implementation of the unconditional cash transfer to ensure if the amount is still sufficient to cover the increase in prices of goods and other services.