MALACAÑANG on Friday tossed to the Department of Finance (DOF) and the Bureau of Internal Revenue (BIR) “for further study” Sen. Ralph Recto’s proposal to scrap 12-percent value-added tax (VAT) for persons with disability (PWDs) because of its implications on revenue targets earlier set by the Aquino administration.
This, even as Communications Secretary Herminio B. Coloma Jr. also assured the administration remains committed to ease the burden of PWDs. He explained that the Recto proposal will impact revenue projections, and thus requires serious study.
Recto earlier filed Senate Bill 2483 recommending that PWDs be allowed to enjoy the same benefits accorded to senior citizens once the bill granting them tax exemption is signed into law.
In filing the bill, Recto cited a study by the United Nations Economic and Social Commission for Asia and the Pacific which said that PWDs are often among the poorest segments of the population.
“Bearing that in mind and the fact that selected purchases by senior citizens are now exempt from VAT, we are now moving to exempt PWDs from the 12-percent VAT on purchase of selected goods and services,” Recto said.
He added that the proposed 12-percent VAT exemption is on top of the 20-percent discount PWDs currently enjoy under the law.
“Once enacted into law, PWDs would be able to earn additional savings from their purchases and effectively place them at par with our senior citizens in terms of privileges and incentives granted under Philippine laws,” the senator said.
The Recto bill provides that the 12-percent VAT exemption will cover services in hotels and other lodging establishments, restaurants, recreation centers, cinemas, concert halls, amusement parks, medicines, medical and dental services (including professional fees, x-rays, laboratory fees, CT scan and blood tests), domestic air and sea fares, and public transportation.