Senator Juan Edgardo “Sonny” Angara. INQUIRER FILE PHOTO
Senior citizens and persons with disabilities (PWDs) can now heave a sigh of relief as the government will no longer push through with its plan to lift the value added tax (VAT) exemptions granted to them, Senator Sonny Angara said on Tuesday.
Angara, chairman of the Senate committee on ways and means, disclosed that the Department of Finance (DOF) would come up with a revised tax reform proposal which includes, among others, the retention of the VAT exemption benefits of the elderly and the PWDs.
The DOF, he said, recently presented to him the latest draft of the revised version of the first of six packages of the Duterte administration’s comprehensive tax reform program. Package 1 seeks to lower personal income tax rates, broaden the VAT base, and adjust excise taxes of petroleum products and automobiles.
“The DOF is open to retaining the VAT exemption of senior citizens and PWDs. Ibig sabihin po nito ay nakikinig ang ating administrasyon sa ating mga panawagan at sa hinaing ng taumbayan (This means that the administration is listening to the calls of the people),” Angara said in a statement.
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“Patuloy po tayong makikipag-ugnayan sa ating mga economic manager para makabuo ng isang komprehensibong tax reform program na patas, progresibo at hindi magiging pabigat sa ordinaryong Pilipino,” said the senator, who has been against the removal of the VAT exemption.
(We will continue to coordinate with the economic managers on how to come up with a comprehensive tax reform that will be fair, progressive and will not be a burden to the common Filipino.)
Angara co-authored Republic Act 9994 or the Expanded Senior Citizens Act of 2010, which grants VAT exemption to senior citizens. He also sponsored Republic Act 10754, which exempts PWDs from VAT. The measure was signed into law in March last year and was only implemented last December.
“At present, approximately 7.5 million senior citizens and 1.4 million PWDs are entitled to such perks,” the senator said.
BACKSTORY: DOF tax package to remove VAT exemptions on elderly, PWDs
While the DOF is finalizing its proposal, Angara said he would continue to conduct more public hearings on the comprehensive tax reform program to get significant data and hear the comments of various stakeholders.
He said his committee is tentatively set to hold its next hearing on the comprehensive tax reform on January 25. IDL/rga