Binay rejects DOF proposal on seniors citizens' EVAT exemption

MANILA, Philippines - United Opposition (UNO) vice presidential candidate Jejomar C. Binay rejected a Department of Finance (DOF) proposal to increase senior citizens’ discount to 30 percent, but retaining the 12-percent expanded value-added tax (EVAT) on their purchases.

Such a proposal was merely intended to provide President Arroyo a convenient exit should she decide not to sign into law the E-VAT exemption bill for the country’s elderly, said Binay.

He said the DOF earlier asked Mrs. Arroyo to veto the bill, saying the National Government stands to lose P1.68 billion in revenues.

“Such a proposal works against the rights of the elderly, who would have to wait for Congress to deliberate and approve another amendment to the law,” said Binay. 

And since the 14th Congress has adjourned and will only reconvene as a canvassing body for four days in May, the DOF wants the elderly to wait for the new Congress to pass their proposal, he noted.

“Our senior citizens cannot wait forever,” Binay stressed.

On the other hand, Binay said the DOF proposal is insensate to the condition of senior citizens.

“Our senior citizens have waited long enough for Congress to pass this bill. It is the height of insensitivity when the National Government wants our senior citizens to wait again for these discounts, which are actually a drop in the bucket compared to what the National Government loses to tax leaks and smuggling,” he said.

Binay said the DOF’s veto proposal was apparently made to take the heat off Mrs. Arroyo who has shown reluctance to sign the bill into law.

“The DOF speaks of possible revenue losses. But if they did a better job of collecting taxes, of plugging revenue leakages, and moving against smuggling, there would be more funds in the government coffers and we would not be having this debate at all,” Binay said.

According to reports, the government loses P172 billion annually from tax leaks and smuggling, Binay said.

The DOF also said the EVAT exemptions would have a negative impact on the business sector which will incur extra expenses to establish a different invoicing system to account for purchases of the elderly.

“It seems that National Government is more concerned about the situation of the business community than alleviating the condition of the elderly,” he said.

Binay has earlier warned the Arroyo administration of a possible “First Quarter Storm” of senior citizens upset over Malacañang’s cold reception to the bill exempting the elderly from the expanded value-added tax.

The First Quarter Storm is a series of demonstrations staged by student activists from January to March 1971 that rocked the Marcos administration, said Binay.