From the present 12 percent, Senator Panfilo Lacson wants to reduce the value-added tax (VAT) rate on goods and services to the previous 10 percent.
“Among my proposed individual amendments is to reduce the VAT rate from 12 (percent) to 10 (percent). Anyway, yung economy natin gumaganda dahil ang GDP (Gross Domestic Product) growth natin nasa mga 6.9 (percent), yung most recent,” Lacson told reporters on Wednesday.
(Among my proposed individual amendments is to reduce the VAT rate from 12 (percent) to 10 [percent]. Anyway, our economy is improving because our most recent GDP (Gross Domestic Product) growth is now at 6.9 [percent].)
“But here’s the catch, even if I will propose to reduce the VAT rate from 12 percent to 10 percent, tataas pa yung incremental revenue. Ang mage-generate nasa mga P117 billion mahigit,” he said.
(But here’s the catch, even if I will propose to reduce the VAT rate from 12 percent to 10 percent, the incremental revenue will still increase. We will generate more than P117 billion.)
The senator explained that the expected government losses from the reduction of VAT rate could be offset by lifting 78 of the 143 tax exemptions.
“Ang total number of exemptions natin nasa mga 143 so ang gagawin o ili-lift ko yung mga exemptions kasi ang tagal na nilang nakikinabang. Yug iba since 1992, e pinakikinabangan nila yung pagiging exempt nila. So it’s about time they should get back to the Filipino people, to the tax payers,” he said.
(The total number of exemptions is 143 so I’ll lift the exemptions because they have long benefited from it. Since 1992, some have been enjoying the exemptions. So it’s about time they should get back to the Filipino people, to the tax payers.)
“So mababawasan yung babayaran natin, 10 percent na lang yung VAT rate na babayaran and yet yung incremental revenue mas tatatas pa. Ang mage-generate sa amendments ko nasa P117 billon,” Lacson stressed.
(So we will reduce our VAT rate payments to 10 percent and yet the incremental revenue will increase. We can generate about P117 billion from my amendments.)
Lacson said he would introduce his proposal during the ongoing plenary deliberations at the Senate on the Tax Reform for Acceleration and Inclusion (Train) bill.
While Filipinos have been paying the 12 percent VAT since 2006, the senator said many special laws had been passed also that provide tax exemptions on various sectors.
He expressed hope his colleagues would accept his proposal.
Lacson said Senate President Pro Tempore Ralph Recto and Senator Sonny Angara, chair of the Senate committee on ways and means, welcomed his proposal.
“Nag usap kami, most welcome sa kanya (We already talked, it’s most welcome for him),” he said of Recto.
“Pati si Senator Angara, sabi nya wala naman syang nakikitang problema. Sabi ko nga sa kanya…tatakbo sya ng 2019 ikaw ang chairman ng ways and means, you can just imagine sayo maki credit yung reduction from 12 percent to 10 percent e siguradong panalo ka,” he said in jest.
Turning serious, Lacson said Angara saw the wisdom of his proposal when he mentioned it to him. /kga