FILE PHOTO: Senator Grace Poe
Aside from senior citizens, the indigent youth can now be given a chance to enjoy the 20% discount on the value added tax.
That is if Congress passes a measure that seeks to provide benefits to junior citizens.
Sen. Grace Poe, the principal author of this bill, said the State should prioritize giving affordable services to the sick, elderly, disabled, women and children.
If passed, children up to age 12 will be given discounts on medicine, vaccine, medical, dental and burial services, as well as on admission fees in theaters and cinemas.
To make sure that deserving beneficiaries will be chosen, only children belonging to families earning less than 250 thousand pesos a year will be covered.
However, tax expert Atty. Rosario Abelardo said this will decrease the collection of revenues.
“Ang worry ko lang is, I think ang government natin is really looking for sources of revenue, so kung dadagdagan pa natin yung exemptions sa VAT parang hindi siya good move at least at this time. Maybe some other time kapag marami na ang revenue ng government,” he said.
(My worry is, I think the government is really looking for sources of revenue, so if we are going to add more VAT exemptions, it doesn’t seem to be a good move, at least at this time. Maybe some other time when government revenue is enough.)
While this will surely aid the youth, it might result in additional taxes on petroleum products, luxury cars, other products and services.
The measure might also be abused if not implemented properly.
“The elders or the other people may use iyong bata to make the purchase pero gagamit ay hindi naman iyong junior citizen,” said Abelardo.
(The elders or the other people might use the child to make a purchase meant for someone else.)
Loopholes of this proposed bill will be discussed once the Senate committee tackles the measure. — Joyce Balancio | UNTV News and Rescue