Angara proposes staggered VAT increase

BALER, Aurora — Sen. Edgardo Angara said yesterday he favors a staggered increase in the value-added tax (VAT) over two to five years.

Angara said this as he called on the government to lift the VAT exemptions of doctors, lawyers and other professionals.

In an interview at the grounds of the provincial capitol yesterday afternoon, Angara said the proposal to hike the VAT from 10 to 12 percent could be deferred or even implemented on a staggered basis.

"You can’t push a proposal in Congress which is politically unsalable," he said. "We are politicians; if we cannot push (the proposal), let’s defer it."

Angara, who is a native of this town, was one of four recipients of the Dangal ng Aurora award presented by his younger sister, Aurora Gov. Bellaflor Angara-Castillo. The award was conferred upon Angara for his leadership and public service.

The other awardees were Jeho Bitancor for the visual arts, John Arcilla for the performing arts and Dr. Epitacio Palispis for education.

The House of Representatives has begun deliberations on House Bill 3555, which seeks to hike the VAT from 10 percent to 12 percent. The measure is expected to raise a minimum of P30 billion in additional revenues for the government.

However, deliberations on the VAT-increase measure came to an abrupt halt following complaints that the bill lacked procedural requirements before being scheduled for second reading.

Angara, a partner himself in the prestigious ACCRA law firm, said lawyers should not be allowed to avail of VAT exemption privileges.

If the VAT exemptions accorded to doctors and lawyers are lifted, he said, the government stands to earn P2.6 billion in revenues — P1.96 billion from doctors and P631 million from lawyers. — Manny Galvez