Several senators yesterday opposed the planned lifting of the tax exemptions for senior citizens and persons with disabilities (PWDs) supposedly to offset the expected revenue losses if personal and corporate tax rates were cut under the proposed tax reforms.
The Duterte administration was considering such options to ensure stability in tax collections while fulfilling the President’s promise to lower the country’s tax rates, currently among the highest in the world.
Sen. Ralph Recto, one of the authors of the law on tax exemptions for PWDs, said “it will be very difficult for them” to remove the Value-Added Tax (VAT) exemptions for seniors and PWDs.
“I think they do not plan on increasing the VAT rate. If not, they are looking to lift the exemptions on certain sectors. I told them to go easy on that, especially on senior citizens and persons with disabilities,” said Recto.
Recto was among seven senators who met with President Duterte and Finance Secretary Carlos Dominguez on Monday to discuss the administration’s tax reform agenda.