Gov’t agrees to retain VAT exemptions of seniors, PWDs

The Department of Finance is expected to submit to Congress another version of the first package of its tax policy reform program, this time with a provision retaining the exemption from value-added tax (VAT) of senior citizens as well as persons with disabilities (PWD), Sen. Juan Edgardo “Sonny” Angara said Tuesday.

Separately, Albay Rep. Joey Salceda told a media forum that tax reform must be passed this year to sustain funding for the plan to ramp-up infrastructure spending even as the House leadership was cold to introducing new taxes.

Angara, who chairs the Senate ways and means committee, said that during a recent DOF presentation of the first of its six tax reform packages, the department expressed openness to retaining the VAT exemptions currently being enjoyed by seniors and PWDs.

According to Angara, about 7.5 million senior citizens and 1.4 million PWDs are currently entitled to this VAT exemption.

The DOF earlier pitched the removal of the exemption on senior citizens’ non-essential purchases and limiting the tax perk to raw food, education as well as health products and services.