Close  

VAT exemption on seniors’ meds retained in new reform proposal

By: - Reporter / @MAgerINQ
/ 11:25 AM October 25, 2016

Senior citizens could still enjoy the value-added-tax (VAT) exemption only on medicines under a new tax reform package being proposed by the Department of Finance (DOF).

DOF Undersecretary Karl Kendrick T. Chua presented the new proposal during the hearing of the Senate committee on ways and means chaired by Senator Sonny Angara on Tuesday.

ADVERTISEMENT

READ: House to present counterproposal to DOF tax reform package

“For senior citizens, we are proposing to retain the exemptions on medicine in our new proposal,” Chua told the committee.

FEATURED STORIES

“However, we find that the expenses in restaurants, travel air fare, for instance, mostly are consumed by the rich who can afford to pay and go to these restaurants so we’re proposing to remove the exemptions,” he said.

Chua said the money that the government would generate from reducing exemption for the rich would be given to the “poor and vulnerable senior citizens.”

“So one proposal is to expand the coverage or to consider increasing the rate,” he said.

READ: DOF tax package to remove VAT exemptions on elderly, PWDs

For people with disability (PWD), Chua said the government is proposing to transform the VAT exemptions to more direct services and health packages.

“And the main reason why we do these is we’d like to plug the leakages of those who pretend to be seniors, or benefit from their grandparents and people with disability into a system wherein it’s fair and transparent,” he said.

Chua said the government, in its proposed tax reform package, would return P180 billion to the people but this would also be offset by broadening the VAT base, which would cost around P108 by expanding the automobile excise tax.

ADVERTISEMENT

Expanding the automobile excise tax, he said, would contribute some P69 billion to P199 billion. IDL/rga

Read Next
LATEST STORIES
MOST READ
Don't miss out on the latest news and information.
View comments

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Department of Finance, Karl Kendrick T. Chua, Medicines, senior citizens, Tax, valued added tax, VAT
For feedback, complaints, or inquiries, contact us.


© Copyright 1997-2019 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.