FMJ wants House to consider removing VAT on utilities
By Nidz Godino
“Pinatignan po nila sa akin kung puwedeng tanggalan ng VAT ang public utilities, lalong lalo na ang kuryente,” Albay Representative Joey Salceda said in an online press conference President Ferdinand “Bongbong” Marcos Jr. wants House ways and means committee to look into feasibility of removing value-added tax on public utilities.
Salceda, ways and means panel chairman, made statement after House Deputy Minority Leader France Castro of ACT Teachers party-list, House Assistant Minority Leader Arlene Brosas of Gabriela party-list and Raoul Manuel of Kabataan party-list refiled measures seeking to remove VAT on electricity bills, toll fees, and water bills to alleviate plight of public amid continued increase in prices of basic goods and services.
“Definitely, may ganung instruction ang Presidente ,” Salceda stressed.
Inflation ,the rate of increase in prices of consumer goods and services jumped to 7.7% in October from 6.9% in September according to the Philippine Statistics Authority (PSA) last October 3. The 7.7% inflation rate is highest in 14 years, also according to PSA.Salceda, conceded hammering out such measures is easier said than done because of its huge impact in raising government revenues.
For one, the lawmaker said VAT on water bills could be removed, provided franchise tax for water concessionaires is increased.
Salceda said National Internal Revenue Code needs to be amended so that increase in franchise tax won’t be passed on to consumers.
“We will study it very carefully…kasi kung gagawin namin ‘yan at makikinabang ang tao ngayon, pero mada-downgrade ang credit rating natin, lalong tataas ang interest rate, mas lalong maapektuhan ang mahihirap kung walang panggastos ang gobyerno sa social services,” Salceda said.
“Definitely, we in the House ways and means panel will avoid revenue negative measures and avoid credit downgrade arising from increased budget deficit and higher that…we are very conscious of that, maingat na maingat po tayo riyan,” he added.
For her part, Castro said removing VAT on electricity, toll fees, and water bills should have been passed a long time ago.
“We refiled House Bill 5994 or the bill removing value added tax on systems loss in electricity, House Bill 5995 removing VAT on electricity bills, House Bill 5996 removing VAT on toll fees, and House Bill 5997 removing VAT on water bills, as concrete steps in alleviating plight of Filipino consumers and lowering their bills,” Castro said in a statement.
Castro said simply removing 12% VAT from P2,000 electricity bill would save consumer P240 of his hard-earned money.
“These bills were first filed by Bayan Muna in previous Congresses, but we believe that the approval of these anti-VAT bills is more imperative now because of dire hardships Filipinos are enduring…we urge House leadership to immediately hear these bills, and Malacañang should also classify them as urgent as way to help our people,” she stressed.
Certifying a bill as urgent allows House of Representatives and Senate to approve measure on second and third reading on the same day.
ISKUP! 