House body approves VAT exemption for PWDs

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MANILA, Philippines —The House of Representatives ways and means committee approved in principle a bill exempting persons with disabilities (PWDs) from paying value-added tax (VAT), but the measure would need some fine-tuning.

In a statement, Marikina City Representative Romero “Miro” Quimbo, ways and means chairperson, said House Bill No. 1039 would have to be referred to a technical working group for fine-tuning.

The bill authored by Leyte Rep. Ferdinand Martin Romualdez seeks to amend Section 32 of Republic Act 7277 or the “Magna Carta for Persons with Disability” and proposes that PWDs be exempted from VAT in addition to the 20 percent discount from goods and services.

Romualdez said the bill is an “equalizing measure” as it gives the same rights to PWDs as with the VAT exemption for senior citizens.

Quimbo said VAT exemption for PWDs would not result in massive revenue loss.
He also said the VAT exemption bill would make PWDs less of a “burden” for families.
“(T)oday, they are a medical burden; they are burden to the family… a great number of them anyway. But with these (VAT exemptions), these are just drops in the bucket towards their mainstreaming,” Quimbo said.

The VAT exemption will apply on: medical and dental services; purchase of medicines in all drugstores; public railways, skyways and bus fare; admission fees charged by theaters, cinema houses, concert halls, circuses, carnivals and other places of culture, leisure and amusement; and all services in hotels and similar lodging establishments, restaurants, and recreation centers.