The lawmakers of the Makabayan bloc on Wednesday filed a bill seeking to exempt basic commodities, that were commonly consumed in poor Filipino households, from a 12 percent value-added tax (VAT).
Under House bill no. 5504 or Tax Reform Act of 1997, Makabayan bloc lawmakers seek VAT exemption of the following basic commodities: bread, canned pork, beef, fish and other marine products, instant noodles, and biscuits.
They also proposed VAT exemptions for refined and raw sugar, cooking oil, salt, laundry soap, detergents, firewood, charcoal, candles, and drugs classified by the health department.
The bill was filed by Kabataan party-list Rep. Raoul Danniel Manuel, Act Teachers party-list Rep. France Castro, and Gabriela women’s party Rep. Arelene Brosas amid the surge of inflation and depreciation of the peso.
In September, the inflation rate in the country surged to 6.9 percent which was attributed to high inflation of food and non-alcoholic beverages, according to the recent report of the Philippine Statistics Authority (PSA).
"Removing the 12% VAT on basic goods consumed by poor families on a regular basis will dramatically ease their economic suffering amid skyrocketing prices, massive joblessness, and depressed wages," Brosas said in a statement on Thursday, Oct. 13.
Once implemented, she said a Php 12 could be deducted from the Php 100 price of a kilo of refined sugar.
She pointed out that the government has the responsibility to provide “concrete solutions” to address high prices instead of "asking consumers to control their purchases."
“Ito dapat ang gawing prayoridad sa halip na iratsada ang mga panukalang walang kinalaman sa pagkalam ng sikmura ng mga mahihirap," she added.
