THE chairperson of the House Committee on Ways and Means yesterday threw his support behind the bill seeking to lower the Value-Added Tax (VAT) from 12 to 10 percent to provide tax relief to millions of Filipino households and help alleviate inflation.
Marikina City Rep. Miro Quimbo vowed to ask the Legislative Executive Development Advisory Council (LEDAC) to include House Bill No. 4302, also known as the “VAT Reduction Act of 2025,” to its list of priority legislative agenda.
“We have also proposed that the matter be taken up at the LEDAC because I think it’s something very significant, something like this should be discussed at the highest level, so the LEDAC is taking place Thursday next week, if I’m not mistaken, I’ve requested that it also be taken up,” Quimbo told the panel.
If passed, the bill, which was filed by Batangas Rep. Leandro Leviste, would reduce annual VAT collections by over P200 billion – equivalent to an estimated P7,000 savings per household each year.
While the Department of Finance is studying other measures to offset the reduction in the VAT, Leviste earlier sought Quimbo’s support for the bill, saying the revenue losses can be recovered either by a land-based wealth tax on the 10,000 richest Filipinos or a reduction in the budget of the Department of Public Works and Highways (DPWH) which is under fire over massive graft and corruption hounding its flood control projects.
Leviste has earlier proposed a land-based wealth tax of P300,000 per square meter, saying it would help offset the revenue losses from the VAT rate reduction.
The neophyte lawmaker said that if Congress will not pass his proposal for a wealth tax on the rich to support the lowering of the VAT rate, lawmakers may “instead slash government spending, particularly given the administration’s findings of significant wastage in the DPWH budget.”
“In fact, (today) is the DPWH budget hearing, so perhaps we can move for a slashing of the budget of DPWH by P200 billion (today) to support lowering the VAT by two percent, resulting in P7,000 of additional disposable income in the pockets of every Filipino family. Would you support this measure, Mr. Chair?” he asked Quimbo, who said, “100 percent, I support. Gusto mo gawin pa natin P300 billion iyan e (If you want, we can even make it P300 billion).”
“I think the Constitution requires our tax system to be progressive, so anything that is in line with progressivity, meaning taking from those who have much and getting less from those who have less, the Committee will always be supportive of that,” Quimbo said.
Leviste said that with Quimbo’s support, there is now a higher chance that his proposal will become a priority bill of the 20th Congress and approved.
