• CHERYL G. CRUZ
The Sangguniang Panlungsod of Bacolod is supporting a proposal to lower the value-added tax, from 12 percent to 10 percent, filed in the House of Representatives.
The SP unanimously passed Sept. 10 the resolution authored by Councilor Caesar Distrito, saying the current VAT rate “has long been considered burdensome to consumers, especially ordinary wage earners, as it significantly increases the prices of basic commodities and essential goods”.
Distrito, chairperson of the SP Committee on Ways and Means, said that House Bill 4302, filed by Batangas 1st District Rep. Leandro Legarda Leviste, seeks to lower the VAT to 10 percent to provide immediate relief to Filipino families and stimulate economic growth.
“Lowering the VAT will not only alleviate the financial strain of Filipino households but will also encourage higher consumption, thereby boosting business activities and contributing to a more dynamic local economy,” he added.
He noted that, at 12 percent, the Philippines has the highest or one of the highest VAT rates in Southeast Asia, with neighboring countries, such as Thailand and Malaysia imposing only seven percent, and Singapore at eight percent, making the Philippine VAT comparatively more onerous for its citizens.
The city government of Bacolod and its constituents stand to benefit from the reduction of VAT as it will improve the purchasing power of Bacolodnons, promote inclusive growth, and contribute to better quality of life, the resolution stressed. | CGC
