Skip to main content

Gatchalian Criticized Department of Finance' Proposal To Increase VAT

gatchalian criticized DOFs proposal to increase VAT

As part of the government’s plan to reform the tax system, Senator-elect Sherwin Gatchalian has criticized the proposal of the Department of Finance (DOF) to increase the value-added tax (VAT) rate while reducing income tax rates.

The proposal of DOF according to him is “anti-poor”.

In a PNA report, Senator Gatchalian quoted...

The reduction in the income tax rates will not be felt by the poor because their incomes are already exempted from taxation. The poor, however, will be adversely affected by any increase in the VAT rate.
DOF proposed to increase the VAT from 12% to 14% and expand the VAT base by removing all exemptions; except in agriculture, banks, education, health and remove zero-rating except direct exports.

The DOF submitted to Congress last month the government’s tax reform bill. This includes tax exemption to all wage earners with an annual income of less than P1 million.

A study cited by Gatchalian which was conducted by former Secretary General Romulo Virola of the National Statistical Coordination Board, revealed that over 74.7 percent of the population or 14 million families comprise the lower class, while only 0.1 percent or 21,200 families constitute the upper class.

The remaining 25.2 percent fall within the “middle class,” or the 4.7 million families with five members who earn P328,000 to P4 million a year.

Senator Gatchalian explained...

Given the inelasticity of basic goods and services covered under the VAT, the burden of the increased VAT rate will be shifted from the producers to the consumers. The poor will be forced to allocate a greater proportion of their already meager incomes on utilities, fuel, and other basic consumption goods and services.
For the knowledge of all, Philippines has the highest VAT rates at 12% in Southeast Asia. Senator-elect Gatchalian also added that...
Increasing the VAT rate will definitely have a negative effect on the purchasing power of the poor, who are always the first to bear the brunt of price hikes of basic commodities and utilities.

 READ ALSO: Death Penalty For PLUNDER Wants Senator Panfilo Lacson[1]

If you agree with Senator Gatchalian's remarks, kindly share this article. Thank you!

Source: Politiko[2]
Photo credit: wingatchalianforsenator[3]

References

  1. ^ Death Penalty For PLUNDER Wants Senator Panfilo Lacson (www.allthingspinoy.com)
  2. ^ Politiko (politics.com.ph)
  3. ^ wingatchalianforsenator (www.google.com.ph)
Labels:

Popular posts from this blog

R. Tiglao Exposed LTO Records Showing Aquino Never Bought or Sold a Porsche

Veteran columnist Rigoberto Tiglao exposed the Land Transportation Office (LTO) records of former President Benigno Aquino III showing that he never bought or sold an expensive Porsche car. The LTO records proved that the former President did not sold his Porsche 911 Carrera car which he claimed he bought for P5 million. The controversial Porsche car of the former President made headlines just months into his presidency but he explained that he bought the luxury car with the proceeds he got when he sold his BMW. Because of the furor from such display of opulence, Pres. Aquino claimed to have sold it six months later for exactly the same price. According to Tiglao during that time he asked through his column the LTO to release the car's deed of sale and registration to prove that it was not a gift from a Chinese-Filipino tycoon as rumored by some individuals critical to the President. The only possible way to discover whether the Porsche luxury was indeed sold was through ...
Read more

You can pay at a restaurant by smiling at a camera

© Provided by Engadget As easy as it is to make purchases in the era of tap-to-pay services , it's about to get easier still. Alipay (which handles purchases for Chinese shopping giant Alibaba) has launched what it says is the first payment system that uses facial recognition to complete the sale. If you visit one of KFC's KPRO restaurants in Hangzhou, China, you can pay for your panini or salad by smiling at a camera-equipped kiosk -- you need to verify the purchase on your phone, but you don't have to punch in digits or bring your phone up to an NFC reader. The system (Smile to Pay) is purportedly resistant to spoofing with photos and other tricks. It relies on both depth-sensing cameras and a "likeness detection algorithm" to make sure it's really you. Reportedly, the technology is good enough that it can accurately identify people even when they're disguising themselves through makeup or wigs. You shouldn't have to worry about someone buying ...
Read more

Tesla cloud account hacked to mine cryptocurrency

© Provided by The Hill An unidentified outside hacker infiltrated Tesla's Amazon cloud account and used its systems to quietly mine for cryptocurrencies, a cybersecurity firm announced Tuesday. The hack also potentially exposed the electric car company's data. Researchers for RedLock found that Tesla's credentials on an IT administrative console were not password protected. They made the discovery while trying to track down which organizations had left their Amazon Web Services (AWS) credentials openly exposed on the internet last month. The hackers quietly hijacked the console and began running scripts to generate virtual currency like bitcoin, the latest in a series of "cryptojacking" attacks. The researchers also found the hackers used "sophisticated evasion measures" to go undetected. A spokesperson for Tesla said the company learned about the breach in a company-sanctioned bug bounty program that pays outside hackers to discover vulnerabilitie...
Read more