CAVITE Rep. Francisco “Kiko” Barzaga has filed a bill in the House of Representatives seeking to abolish the 12% Value-Added Tax (VAT) on all goods and services.
Under House Bill No. 5119, Barzaga argues that the current VAT system places a significant burden on citizens. “VAT places the greatest burden on ordinary consumers, particularly low- and middle-income families, as it is imposed on goods and services regardless of the ability to pay,” Barzaga explained.
He believes it is time for Congress to re-evaluate the implementation of VAT. “With the rising cost of living, inflationary pressures, and widespread calls for tax reforms that promote equity and social justice, it is imperative for Congress to revisit the VAT system,” Barzaga stated.
“This measure seeks to abolish VAT by reducing its rate from 12% to 0%, thereby relieving the tax burden on Filipino consumers and enhancing their purchasing power.”
The congressman also explained that to compensate for the revenue lost by abolishing VAT, he will recommend a fairer and more progressive taxation system.
