THE Duterte administration has assured there will be no change in the value-added tax (VAT) exemption for senior citizens and persons with disabilities (PWDs).
The Department of Finance (DOF), through Undersecretary Karl Kendrick T. Chua, announced the good news in a press briefing in Malacañang on January 27.
“Ang good news po dito, ang senior citizen VAT exemption at sa PWD ay hindi tatanggalin, pero ang gagawin po natin ay aayusin po natin ’yung sistema. For example, through a national ID para ’yung leakage ay maiwasan, na ang benepisyo lang ay mapupunta sa tamang tao,” Chua said.
Chua added that the tax-reform measures aim to decrease the poverty rate from 22 percent to 14 percent and make the Philippines a middle-income country by 2022. He said the tax reform is part of President Duterte’s 10-point socioeconomic agenda.
“Nag-promise po siya ng tax reform, ng mas mababang buwis, pero nag-promise rin po siya ng walo pang other priorities na kailangan pondohan. At dahil dito, naisipan po namin na ayusin po ’yung ating income and other tax system,” Chua said.
“So ang gusto namin ay maging simpler, fairer, at more efficient ’yung tax system para po ito ay tumulong po sa pag-unlad ng ating bansa,” he added.
Chua said that, while some sectors consider the tax-reform measures as a burden, Filipinos should instead look at it as a package.
“Hindi lang po dapat ’yung oil lang, automobile lang. Dapat as a package po natin tingnan kasi ’yung totoo po, for majority of Filipinos, ’yung lowering of personal income-tax ay makakadagdag po sa welfare or income nila,” Chua said.
“At kung gamitin po natin itong mga tax revenues para sa mga mahihirap at dahil dito, in-earmark po namin ang revenues na makokolekta namin only to infrastructure, education, health and social protection. Sa tingin po namin ay walang dahilan kung bakit hindi natin masolusyunan ’yung kahirapan at makita natin ’yung Pilipinas na maging mas maunlad sa next generation,” he said.