A measure seeking to remove the 12% Value-Added Tax (VAT) on all goods and services has been filed in the House of Representatives.
Cavite 4th District Representative Francisco “Kiko” Barzaga filed House Bill 5119 proposing to abolish VAT to ease the financial burden on Filipino consumers.
“VAT places the greatest burden on ordinary consumers, particularly low- and middle-income families, as it is imposed on goods and services regardless of the ability to pay,” Barzaga stated in his explanatory note.
He added that with the rising cost of living, inflationary pressures, and the need for equitable tax reforms, it is time for Congress to revisit the VAT system.
“This measure seeks to abolish VAT by reducing its rate from 12% to 0%, thereby relieving the tax burden on Filipino consumers and enhancing their purchasing power,” he said.
To offset potential revenue losses from the removal of VAT, Barzaga said he plans to file additional measures promoting a “more progressive, fair, and sustainable” taxation system.
Several other pending bills in Congress also aim to ease VAT burdens, including measures to exempt senior citizens’ electricity bills, low-consumption households, and medicines from VAT imposition.
