Leviste: Congress separate from executive, should pass tax cuts
MANILA, Philippines — Batangas Rep. Leandro Legarda Leviste renewed his call for Congress to pass proposed tax cuts, saying lawmakers should act independently despite opposition from the executive branch.
In a statement Wednesday, Leviste said his fellow Batangueños returned to the Batasang Pambansa to push the House of Representatives to approve measures lowering the value-added tax (VAT) on goods from 12 percent to 10 percent and suspending VAT on fuel products amid the Middle East conflict.
He again criticized Executive Secretary Ralph Recto, alleging that the latter was blocking the proposed VAT cuts.
“As Congressman [Sergio] Dagooc mentioned, Secretary Recto is the one blocking the reduction of the VAT. I would like to emphasize that we are all elected officials here in Congress,” Leviste said.
“We are in a democracy with separation of powers — and Congress does not need to follow the voice of a single Cabinet member,” he added.
During a hearing of the House legislative energy and development committee, Leviste urged members of the panel, including presiding officer Marikina Rep. Miro Quimbo, to support the majority of lawmakers favoring VAT cuts.
“Mr. Chair, let us not be held hostage by the position paper signed by Secretary Recto. The leadership of the House should side with the majority of Congress that supports lowering the VAT, so that our people can expect that when Congress resumes on May 4, we will finally put the reduction of the VAT to a vote,” he said.
According to Leviste, Quimbo said the House would not allow itself to be a “mere decoration” and would decide based on public needs.
“Despite whatever the executive or judiciary might say, we will make the decisions based on the mandate that is given to us individually by our respective districts and by sectors that we represent,” Quimbo said.
“We will ensure that we will craft these proposals and decide on it,” he added.
Leviste earlier accused Recto of blocking the proposals, citing information that the executive secretary, a former Finance chief, was behind the delay in passing VAT reduction measures.
READ: Leviste to Recto: Stop blocking VAT cuts on fuel, goods
Leviste has filed House Bill No. 4302, which seeks to lower VAT on goods, and House Bill No. 8838, which proposes suspending VAT on petroleum products. He said several lawmakers in both chambers have expressed support for the measures.
READ: Rep. Leviste: Lowering VAT to 10% should be top tax bill in 20th Congress
In response, Recto urged Leviste to focus on his legislative work.
“No one person can block Congress from enacting a law. Stop blaming others and just do your job,” he said in a message to INQUIRER.
READ: Recto fires back at Leviste: Don’t blame others, just do your job
It remains uncertain whether Congress will pass a VAT cut or suspension measure, as President Ferdinand Marcos Jr. has expressed lukewarm support.
In a press conference Monday, Marcos said additional VAT revenues collected during periods of high fuel prices would fund targeted aid for vulnerable sectors affected by the energy crisis.
Malacañang, however, has urged Congress to pass a law granting the President authority to suspend VAT on fuel products.
Critics of the administration have also questioned its response to rising fuel prices.
Marcos signed a law on March 25 allowing the suspension of excise taxes on fuel, but his latest order only covered liquefied petroleum gas and kerosene.
Economic officials have warned of revenue losses from suspending fuel taxes. On March 9, Finance Undersecretary Karlo Fermin Adriano told the House Committee on Ways and Means that removing excise taxes on petroleum products could lead to a P136 billion revenue decline in 2026, with P121.4 billion from excise taxes and P14.6 billion from reduced VAT collections. /mcm
