DOJ backs VAT exemption for PWD

MANILA, Philippines – The Department of Justice (DOJ) supports a proposed law providing for value-added tax (VAT) exemption for persons with disability (PWD).

In a legal opinion released last week, the DOJ said it sees no legal question against the passage of Senate Bill 2890 and House Bill 1039, which both aim to expand the benefits and privileges of PWDs.

The DOJ said the purpose of the law is consistent with Section 11, Article 2 of the Constitution, which requires the State to “value the dignity of every human person and guarantee full respect of human rights.”

“By providing the additional benefits and privileges to PWDs, it is recognizing the difficult situation of the PWD, the need to promote and protect their human rights, including those requiring more intensive support,” read the opinion.

The DOJ, however, did not touch on possible implication of the implementation of the propose law on revenue collection of the government, saying such issue should be referred to the Department of Finance and Bureau of Internal Revenue.

Under the proposed law, PWDs would be given exemption from payment of VAT on specific goods and services.

In addition, it also mandates a 20-percent discount for PWDs on professional fees of attending doctors and funeral services.

Both bills have already been approved on third reading in both houses of Congress.

“From the foregoing, and finding no legal or constitutional objection thereto, we recommend President’s approval and signing into law should this be forwarded to the President as an enrolled bill,” the DOJ said.

The DOJ opinion was signed by Asst. Secretary Adonis Sulit and was issued upon request of deputy executive secretary for Legal Affairs Menardo Guevarra.