Legarda: Tax relief for families, accountability for government

Senator Loren Legarda stressed that tax reforms must bring relief to Filipino families while ensuring accountability in government spending. She assured that the revenue foregone from tax cuts can be recovered by addressing corruption, which drains far more resources than the reforms would cost.

On Tuesday, March 17, Legarda delivered her privilege speech on three tax reform measures: Senate Bill No. 1851, Senate Bill No. 1857, and Senate Bill No. 1963, designed to lower the cost of food, medicines, and electricity for ordinary households.

“Ang halagang mawawala sa mga tax cuts na ito ay mas mababa pa sa kabuuang nalilimas ng korapsyon tulad na lang ng mga anomalya sa flood control projects na umabot sa trilyong piso,” Legarda said.

She explained that while taxes are the lifeblood of the State, they have turned into an added burden for minimum wage earners and low-income families. Inflation recently hit 2.4 percent, driven by a 1.8 percent increase in food and non-alcoholic beverages, further squeezing household budgets.

“Hindi mapapatakbo ang isang bansa kung walang buwis na kinokolekta mula sa mga mamamayan. Ngunit kung ang buwis ay halos sinasaid na ang bulsa ng ordinaryong Pilipino, hindi na lifeblood ang tawag dito, dagdag pagdurusa na,” Legarda said.

The Differentiated VAT Rates Act proposes lowering VAT to 10 percent for essential goods and services while retaining the 12 percent VAT on luxury items such as expensive cars, real estate, cigarettes, vape, and alcohol.

“Hindi dapat i subsidize ng minimum wage earner ang lifestyle ng may kaya,” Legarda said. She cited examples: basic preventive maintenance service for vehicles would drop from 5,000 to 7,000 pesos to 4,910 to 6,875 pesos, a mattress priced at 3,000 pesos would fall to 2,946 pesos, while a luxury bag worth 350,000 pesos would remain taxed at 12 percent.

The Murang Bilihin at Serbisyong Medikal Act removes VAT on basic commodities, medicines, and medical services. This includes exemptions for over the counter medicines, first aid supplies, canned goods, cooking oil, instant noodles, soap, and professional medical services.

“Kaya naman, nararapat lang na wakasan ang pagpapataw ng buwis sa mga basic commodities para sa ating mga kababayan,” Legarda said. She noted that paracetamol priced at 50 pesos would drop to 45 pesos, bandages from 60 pesos to 54 pesos, instant noodles from 750 pesos to 670 pesos per box, and cooking oil from 120 pesos to 107 pesos per liter.

The third measure seeks to remove VAT on electricity charges such as Systems Loss and Lifeline Rate Subsidy, which Legarda argued should not be taxed since they are already subsidies borne by consumers.

“Maganda ang adhikain, ngunit mali na tumulong ka na, nabuwisan ka pa,” she said.

Legarda explained that all of these bills were filed under normal circumstances in the country because she believes that reductions and exemptions have long been overdue.

“Mr. President, ang isang minimum wage worker ay nagbabayad ng buwis araw araw. May VAT sa halos lahat ng binibili niya. Buwan-buwan, lumiliit ang suweldong dapat sana ay buo niyang maiuuwi sa pamilya. Tanggapin na natin na ang kasalukuyang tax system ay regressive. Mas malaking proporsyon ang kinukuha nito sa mahihirap, kaysa sa mayayaman,” Legarda said.

She further urged her colleagues to pursue comprehensive tax reform anchored on equity.

“Tayong mga nandito sa bulwagang ito ay dapat talakayin nang masinsinan ang usaping comprehensive tax reform, hindi bilang isang sukatan ng kita, kundi batayan ng equity sa ating lipunan,” she said.

The four-term senator stressed that the government must also face accountability.

“Panahon na para tanggalin sa mga Pilipino ang pasaning ito at harapin ng pamahalaan ang pagsasaayos ng sarili nitong paggastos at integridad,” she said.

Legarda appealed for the swift passage of her measures as a bridge toward genuine change and tangible relief at the household level.

“Ang tanging hinihingi ng taumbayan ay ginhawang ramdam, pagbabago sa presyong nakikita sa resibo, at patakarang may pakinabang sa hapag kainan, hindi lang sa macroeconomic report,” Legarda concluded. (30)