By RONALD GUSTILO
BANGUED, Abra — The Kakailian Salakniban Tay Amin a Nagtaudan (Kastan), the Cordillera Peoples Alliance chapter in the Province of Abra, calls on President Rodrigo Duterte to retain the Value-Added Tax exemption for senior citizens and persons with disabilities.
This was after Senator Ralph Recto said that the removal of VAT exemption and the raising of the value added tax from 12% to 14% was part of the tax reform plan proposed by the Department of Finance under Secretary Carlos Dominguez.
“The removal of the Value-Added Tax exemption for senior citizens and persons with disability will be an added burden for the people. They should instead remove the VAT all together on basic commodities like electricity, water and oil,” said Villamor Pati, Kastan chairperson.
The proposed tax reform package includes an all-in tax exemption for those earning P1 million and below yearly, lower tax rates for individuals and firms, an increase in the VAT rate to 14 percent and the expansion of the VAT coverage.
“While we welcome the tax cut for personal tax, we are worried that they will be passing the burden to the people. Why are they running after us when there are bigger fishes in the sea? They should run after the big tax evaders so that they will meet the revenue target. If they will be able to run after the big time tax evaders, the P9 billion loss from reducing corporate taxes will be covered, the people should benefit from the tax reform plan, not be burdened by it,” ended Pati. # nordis.net