QUEZON CITY, Philippines (Eagle News) — Senator Risa Hontiveros filed a bill that will alleviate the negative effects of the Tax Reform for Acceleration and Inclusion (TRAIN) law on the prices of goods.
Hontiveros said that the proposed Senate Bill 1671 or “Bawas VAT” bill will lower the value-added tax to 10% on January 1, 2019 and will eventually reach 8% by January 1, 2022.
“After the recent passage of the Tax Reform for Acceleration and Inclusion (TRAIN) Act, which significantly reduced the number of exemptions to the VAT, the Department of Finance (DOF) has stated that we can expect an improvement in the efficiency of tax collection,” Hontiveros said.
“This efficiency should allow us to provide relief for the lower economic deciles of our population by lowering the VAT rate to 10 percent,” she added.
The proposed cuts will only be implemented if the government earns 4.5% of the gross domestic product of the previous year.
“It’s time we strengthen the people’s purchasing power. It’s time for the public to cut clean from regressive taxation. It’s time to cut the VAT,” she added.
https://youtu.be/IwD_Ae_jty8
