With inflation hitting an 11-month high, House Assistant Minority Leader Sarah Elago on Friday filed a bill seeking to remove the 12 percent value-added tax (VAT) on basic goods and services.
“With inflation continuing to squeeze household budgets, there is no reason to delay meaningful relief. The ‘Presyo Ibaba Bill’ must be certified as urgent to immediately lift the 12 percent VAT on basic goods,” said Elago, who represents the Gabriela Women’s Party.
House Bill 4774, or the “Presyo Ibaba Bill,” sought to remove the 12 percent VAT on basic goods and services to provide immediate and direct relief to consumers.
Elago urged Malacañang to certify the measure as urgent as she cautioned economic managers, particularly Executive Secretary Ralph Recto, from opposing the bill, saying policies should prioritize public welfare over increased taxation.
Elago cited the Philippine Statistics Authority’s report showing inflation at 2 percent in January, driven largely by higher costs of housing, water, electricity, gas, and other fuels.
The increase places added pressure on household budgets, particularly among poor families, she added.
“In the midst of 11-month high inflation, it is clear that the 12 percent VAT is making life harder for ordinary Filipinos,” Elago said.
“As the prices of electricity, water, food, and other basic necessities rise, the VAT further eats into the meager income of poor families,” she added.
