The Senate has approved the proposal exempting residential units on lease for P15,000 and below per month from the value-added tax (VAT) under the proposed Tax Reform for Acceleration and Inclusion Act (TRAIN).
During Senate deliberations on the proposed tax reform law, Senator Ralph Recto proposed the VAT exemption, citing the current exemption at P12,800 has been in place since 2012.
Recto noted his proposal would have a “very small impact on revenue.”
The proposal was carried by TRAIN author Senator Juan Edgardo Angara and approved by Senate President Aquilino Pimentel III since there were no objections.
