Duterte admin keeping seniors’ 20-percent discounts, and their VAT exemptions on medicine, raw food purchases.“Now if we compare this to a senior citizen who has to make ends meet for him to be able to afford his maintenance medicine, the 120 pesos saved for VAT would go a long way. This is how we want to distribute a little wealth through taxation,” she stressed.
Alvarez pointed out that “the 20 percent discount enjoyed by all senior citizens would remain as well as the VAT exemptions they enjoy for their purchases of medicines and food in its raw form.”
|Photo by: Inquirer|
Alvarez said Finance Secretary Carlos Dominguez III had made it clear that VAT exemptions on food in its raw form, medicine and education would not be removed because these three essentials are what the poor need the most.
“The Duterte administration’s tax reform plan does not end with personal and corporate income tax cuts. It also includes revenue-generating measures not only to offset the collections lost from the tax reductions, but also to raise funds for higher spending on infrastructure, human capital and social protection initiatives,” Alvarez said.
She said the additional revenues would help bridge the chronic income gap between Metro Manila and the other regions, which is one way to cut the poverty rate from the current 26 percent to only 17 percent by the time President Duterte steps aside in 2022.
“As represented by the DBCC (Development Budget Coordinating Council) to the House of Representatives, the comprehensive tax reform program of the Duterte Administration would allow us to generate funds that we can use to invest in areas where the per-capita income is lowest in the country,” Alvarez said.
Alvarez compared, for instance, the per-capita Gross Regional Domestic Product (GRDP) for 2015 between that of the National Capital Region (NCR), which is the highest at P398,985, and the Autonomous Region in Muslim Mindanao (ARMM), which is the lowest (and 15 times smaller) at P26,757 in current prices.
The per-capita GDRP for ARMM is a mere 7 percent of that of NCR, which is nearly three times the national average of P131,026 and 9 percent higher than in 2014 based on current prices.
Compared to Calabarzon (Cavite, Laguna, Batangas, Rizal and Quezon region), which has a per-capita GRDP of P145,859 and the Cordillera Administrative Region (CAR) with P131,110, ARMM remains at the losing end, she said.
Alvarez said that under the proposed P3.35-trillion “Budget for Real Change” of the Duterte administration, under spending which has hampered the implementation of social protection programs for the poor, would be a “thing of the past.”
Earlier, Domiguez had informed lawmakers that to help fund the massive infrastructure buildup and investments in human capital and social protection under the Duterte presidency, the government would raise the budget deficit to 3 percent of the GDP under the 2017 proposed budget, which will “substantially be offset by lower debt service.” AJRSP with PR
Duterte admin keeping seniors’ 20-percent discounts, other perks Reviewed by FilipiNews PH on Wednesday, August 31, 2016 Rating: