Leviste slams Cabinet exec's alleged blocking of bill to slash VAT
At A Glance
- Why are members of Congress allowing the executive branch to keep value-added tax (VAT) on commodities including fuel products despite strong clamor to reduce it?
Batangas 1st district Rep. Leandro Legarda Leviste (Facebook)
Why are members of Congress allowing the executive branch to keep value-added tax (VAT) on commodities including fuel products despite strong clamor to reduce it?
A fired up Batangas 1st district Rep. Leandro Legarda Leviste asked this question to his solon-colleagues Monday, April 13 during the second marathon hearing of the House Legislative Energy Action Development (LEAD) Council.
The hearings are being held to help the House of Representatives come up with both immediate and long-term relief measures for Filipinos in light of the elevated fuel prices in the country.
“We have had enough hearings. It is time to let every member’s vote be known. There should be separation of powers, so why is Congress allowing the Cabinet to block a vote on the VAT?” Leviste said in a mix of Filipino and English.
The neophyte solon earlier filed in 20th Congress House Bill (HB) No. 4302 to lower the VAT on all goods from 12 percent to 10 percent; and more recently, HB No. 8838 to suspend the VAT on petroleum products.
He said that many House members and senators support lowering the VAT; thus, the matter should simply be brought to a vote.
Leviste also brought up a position paper signed by then-Deppartment of Finance (DOF) Secretary Ralph Recto that opposed a decrease in the VAT from 12 percent to 10 percent as this “would lead to substantial revenue losses".
According to Leviste, Congress has yet to schedule a vote on lowering the VAT because of the continuing opposition of now Executive Secretary Recto, who also authored the law that raised the VAT from 10 percent to 12 percent.
Batangas 1st district Rep. Leandro Legarda Leviste (Facebook)
On the sidelines of the LEAD Council hearing, Leviste led a rally with his fellow Batangueños outside the south gate of the House of Representatives in Batasan, Quezon City. The demonstrators, who according to the solon reached up to 3,000, supported the call to reduce VAT.
“My constituents here from Batangas represent the millions of Filipinos who are paying higher prices because of the VAT yet have not received any ayuda—I hope the government will find the sense of urgency to lower the VAT on all goods and immediately suspend the VAT on oil. Suspending the fuel excise tax is not enough,” Leviste said.
The Batangueños were joined at the rally by representatives of other sectoral groups.