House bill seeks to exempt water, power, oil from VAT

INQUIRER FILE PHOTO

MANILA, Philippines—A bill  to exempt water, electricity and oil from Value Added Tax (VAT) is being pushed by the Makabayan bloc at the House of Representatives.

The Makabayan bloc said the imposition of regressive VAT on goods and services has greatly eroded the purchasing capacity of Filipino citizens from all walks of life, especially on the majority of those who receive salaries below the required cost of living.

House Bill 343, 344, and 345 or The Acts to Exempt Water Services, Electricity, and Petroleum Products from VAT sought to exempt the said basic commodities from VAT, which the bloc viewed as a “relief to the Filipino people.”

The bill stated that the measure would ensure a healthy population and labor force, as well as a progressive nation since basic services and utilities have been unjustly taxed that  raised the cost of water, electricity and oil.

The group assured that revenue losses to be suffered by the government would definitely  be offset by the increased purchasing power of all households as well as cheaper production costs that will result  to a more robust and equitable economy.

The Makabayan bloc is an alliance of the party-list groups Bayan Muna, Anakpawis, Kabataan, ACT Teachers and Gabriela.