DOF to retain VAT exemptions for seniors, PWDs

The Department of Finance (DOF) is open to retain the value-added tax (VAT) exemption for seniors and persons with disabilities (PWDs), Senate ways and means committee chair Senator Juan Edgardo Angara yesterday said.

Angara said state economic managers have decided to come up with a revised tax reform proposal, which among others, keeps the VAT exemption benefits of senior citizens and PWDs.

Angara, who heads the ways and means committee tasked to evaluate and study the government’s tax programs, said the DOF has presented to the panel the latest draft of the revised version of the first of six packages of the Duterte administration’s comprehensive tax reform program.

Package 1, he said, 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 the current administration is listening to public call and clamor),” Angara said.

“Patuloy po tayong makikipagugnayan sa ating mga economic managers para makabuo ng isang komprehensibong tax reform program na patas, progresibo at hindi magiging pabigat sa ordinaryong Pilipino (We will continue to collaborate with our economic managers so they can come up with a comprehensive tax reform program that’s fair, progressive and won’t burden ordinary Filipinos),” said Angara,.

The senator was among the lawmakers who opposed the removal of the VAT exemption for seniors and PWDs. During the committee deliberations in October last year, senior citizens and PWD groups voiced out their disapproval of the plan.

Based on the DOF’s initial proposal, the VAT base would be expanded by limiting exemptions to raw food, education and health.

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.

The Senate ways and means committee is eyeing holding another hearing on tax reform on January 25.