VAT

Sen. Bam supports VAT reduction to ease burden of price surge, TRAIN Law

Senator Bam Aquino expressed support behind the move to reduce value-added tax (VAT) to 10 percent, saying it will help ease the burden of high prices of goods and services on Filipinos, especially the poor.

“Suportado natin ang pagbaba sa VAT at mga panukalang magbibigay ginhawa sa mga pamilyang nalulunod na sa pagtaas ng presyo. Mahalagang aksyunan na natin ito,” said Sen. Bam, one of four senators who voted against the Tax Reform for Acceleration and Inclusion (TRAIN) Law.

While he supports the move, Sen. Bam promises to ensure that the exemptions under the VAT will remain, including those given to cooperatives, senior citizens and persons with disabilities (PWDs).

“Kailangan nang isalba ang mga Pilipinong nasagasaan ng TRAIN law. Kung ang pagbaba ng VAT uunahin ng Senado, susuportahan natin ito,” said Sen. Bam.

In the Senate, Sen. Panfilo Lacson and Risa Hontiveros have been pushing for the lowering of VAT.

“Patuloy rin naming ilalaban ang pag-preno sa TRAIN at pag-roll-back ng excise tax. Kailangan gawin ang lahat ng ating makakaya upang tulungan ang mga pamilyang hirap na hirap na,” Sen. Bam added.

As part of his efforts to ease the burden of the TRAIN Law on Filipinos, Sen. Bam has filed a measure seeking to suspend the collection of the excise tax under the government’s tax reform program once the average inflation rate surpasses the annual inflation target over a three-month period.

In addition, Sen. Bam is pushing for the full implementation of mitigating measures under the TRAIN Law, such as the unconditional cash transfer program for poor families and the Pantawid Pasada for jeepney operators and drivers.

Sen. Bam has also filed a resolution calling for an investigation regarding the implementation of the unconditional cash transfer to ensure if the amount is still sufficient to cover the increase in prices of goods and other services.

Senate Bill No. 689: Rationalizing the Taxes Imposed on Non-Life Insurance Policies

Water-logged vehicles, homes swallowed by the earth, valuables blown over and washed away – these are scenes from the various calamities experienced by Filipinos over the past years.

From Ondoy in Metro Manila to the 7.2 magnitude earthquake in Bohol and super­ typhoon Yolanda in Leyte, what Filipino families had spent decades working for was taken away and families without the protection of insurance had no recourse but to begin again from scratch.

Non-life insurance policies in the Philippines bear a value-added tax (VAT) of 12% amongst an array of other taxes, such as documentary stamps, fire service and local government taxes bringing the total tax burden to 27.2% per policy. In comparison, life insurance policies carry only 2% VAT after enjoying a 5% reduction thanks to RA 10001.

The prohibitively high taxation rates on non-life insurance have caused Filipino consumers and businesses alike to shy away from this key necessity, placing their hard- earned investments at risk in our disaster-prone nation.

In order to empower our citizens and local businesses to protect hard earned assets and encourage more Filipinos to think long-term, we must pursue the reduction of taxes for non-life insurance policies in the country.

What’s more, as the Philippines enters the ASEAN Integrated Economic Zone, we have a responsibility to strengthen local industries, including our insurance sector who will be contending with foreign competitors who offer non-life insurance policies at 0.4-7% VAT.

This measure will not only safeguard the valued possessions of our hardworking countrymen; it won’t Just shield businesses from the risk of failure after catastrophes beyond their control, but will also create a thriving non-life insurance sector in the Philippines as it competes on a larger stage in the ASEAN.

In view of the foregoing, the passage of this measure is earnestly sought. 


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Bam: Lower the price of electricity

A senator has submitted a measure seeking to lower power rates by removing Value Added Tax (TAX) from the sale of electricity by all electric companies and cooperatives.

In his Senate Bill No. 670, Sen. Bam Aquino wants to make VAT-exempt the sale of electricity at all stages — from generation, transmission, and distribution — to lessen the expenses of Filipino families.

 “A tax relief on electricity will result in significant savings for Filipino families as well as lower operating costs for businesses, from small restaurants and retail stores to large factories,” Sen. Bam said.

 The measure seeks to amend Section 108 (A) (II) and 109 (1) of the National Internal Revenue Code, as amended by Republic Act No. 9337, to cover sale, transmission and distribution of electricity from VAT-exempted transactions.

 Among them are sales of electricity by generation, transmission and distribution companies and electric cooperatives and services of franchise grantees or electric utilities.

 The senator is also eyeing to exempt from VAT the sale or importation of machineries and equipment, including spare parts, to be directly used by the buyer or importer in the generation, transmission and distribution of electricity

 “We’ve been complaining about our expensive electricity for too long. Something must be done to bring down prices,” Sen. Bam said.

 The Philippines has one of the most expensive electricity costs in Southeast Asia, having the third highest tariffs for residential electricity whereas our neighbors’ electrical distribution is heavily subsidized by their governments.

 The lawmaker added that more than hindering foreign investment, high power rates add burden to average Filipino families that are already struggling to pay for other necessities such as water, food and gas.

 

Bam opposes plan to increase VAT to 15 percent

Bilang chairman ng Committee on Trade, Commerce and Entrepreneurship, tutol ako sa pagtaas ng VAT sa 15 percent dahil mataas na ng presyo ng bilihin kumpara sa kinikita ng pangkaraniwang pamilyang Pilipino.

Hangga’t maaari, kailangang panatilihin ang mababang presyo ng bilihin at huwag payagang tumaas ito.

 Pagdating naman sa pangangalap ng pondo, kailangang tutukan ng pamahalaan ang mahigpit na pangongolekta ng buwis at pag-alis ng katiwalian sa Bureau of Internal Revenue (BIR).

 

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