One-year suspension of the Value-Added Tax (VAT) on basic food commodities, fuel, and electricity is an inflation solution, given the persistently high inflation over the past several months, suggested Ilocos Norte Governor Imee R. Marcos.
“The temporary lifting of the VAT on basic commodities will provide urgent, much-needed relief to Filipinos, as inflation hit the hardest in the countryside. The poor Filipinos, they cannot wait for anti-inflation strategies that could take months to work. They need solutions now,” Governor Marcos pointed out.
“Filipinos cannot wait for global oil prices to go down. Prices are already too high for Filipinos living below the poverty line. Removing the VAT would lighten the burden on millions of Filipino households and would make their Christmases litter lighter amidst the high prices.”
The TRAIN Law has Sections 31 to 34 (pages 31 to 44) pertaining to VAT. These sections amended the old provisions of the Tax Code about VAT.
Governor Marcos said, “The VAT suspension will run parallel to the anti-inflation measures of the Duterte economic team and Bangko Sentral ng Pilipinas. It will buy time to set our economy back in shape.
“Wagi ang mahihirap kung mawawala ang VAT kahit isang taon lang; kung walang VAT, bababa ang presyo ng pagkain, gasoline, at kuryente,” she stressed.
Though the President cannot amend the law, he can suspend its implementation though an Executive Order (EO).