Congress nixes VAT removal for seniors

MANILA, Philippines - House Speaker Pantaleon Alvarez is not amenable to the proposal of the Department of Finance (DOF) to remove the value added tax (VAT) exemption senior citizens are presently enjoying.

“Hindi ko pa nababasa yung DOF-proposed bill, pero parang malabo naman siguro kung tatanggalin natin yung exemption (for seniors),” he told reporters. “I have not read the DOF-proposed bill, but it seems unlikely we will remove the exemptions, Alvarez said.

He said the House would study the proposed tax reform package submitted by Finance Secretary Carlos Dominguez and determine “if it is doable.”

“If it is acceptable to us, then we will adopt it, we will sponsor it,” he said.

Under the present law, seniors enjoy VAT exemption for medicine, physicians’ professional fees, medical and dental services, diagnostic and laboratory fees, transportation fares, restaurants, recreation centers, cinema houses, and funeral and  burial services.

Such exemption would be scrapped under the DOF proposal.

Quirino Rep. Dakila Cua, who chairs the ways and means committee, said the proposed VAT exemption removal “is a very emotional thing” for senior citizens.

He said even his mother would get mad at him if he agrees to it.

 “I’m not saying it’s wrong. I’m just saying that’s the point of discussion,” he told reporters.

In addition to senior citizens, the DOF is also proposing that the VAT exemption of persons with disability (PWD) on the same products and services be removed.

Congress granted the privilege to PWDs under a law then president Benigno Aquino lll signed shortly before he stepped down in June.

Senior lawmakers criticized the DOF for advocating the lifting of the VAT exemption for seniors and PWDs.

Rep. Lito Atienza of party-list group Buhay said the administration appears desperate to raise funds for the promises President Duterte made to soldiers and policemen.