A BILL seeking to exempt from expanded value-added tax (E-VAT) basic necessities and prime commodities, besides petroleum products, was filed at the House of Representatives on Monday.
House Bill 4704, authored by Party-list Reps. Luzviminda Ilagan and Emerenciana de Jesus of Gabriela, sought to amend Republic Act (RA) 9337, or the E-VAT law, which they said is a heavy burden for the poor, because it further decreases their capacity to buy food and other basic necessities for the family.
RA 8424 expanded the coverage of VAT to basic necessities and prime commodities that poor families consume on a daily basis, such as processed meat, canned fish, coconut and vegetable oil, bakery products, noodles, milk, dairy products, coffee, sugar, clothing, footwear, tannery and leather products and drugs and medicine, among others.
The legislators said this was further exacerbated when the VAT was perpetuated and its coverage expanded by RA 9337, which was signed into law by former President Gloria Arroyo on May 24, 2005.
“Worse, under RA 9337, VAT now was imposed on such socially volatile products as gasoline and other petroleum products,” they said.
“Over the past several months, we have been deluged with complaints from our constituents who are mostly women from the poorest of the poor that the economic burdens they carry are too much to bear. If at all their husbands are currently employed, the much-expected wage increase last May 1 did not materialize. In the face of increasing prices of basic necessities and prime commodities, as well as oil and petroleum products, how far will the P22 ECOLA go?” said de Jesus.
De Jesus said women are the first to feel the crunch of increase in prices of basic commodities and services.
“And as the family budget shrinks, food becomes scarce, access to basic health services nil, and education, a luxury,” said de Jesus.
“Patuloy na kinukuba ng VAT ang mahihirap nating kababayan. Huwag na nating hintaying mabali pa ang kanilang mga gulugod sa kakaproblema kung paano itatawid ang kanilang mga pamilya sa harap ng walang habas na krisis ng kahirapan,” she added.
