‘Makatulong man lang tayo’: Higher discount, VAT exemption for senior citizens’ power, water bills approved by House panel

The House Committee on Ways and Means on Monday approved a measure granting higher discounts and Value Added Tax (VAT) exemption on the electricity and water consumption of senior citizens.

Committee chairperson and Albay Rep. Joey Salceda approved the substitute bill for House Bill Nos. 1903 and 3040 after hearing no objection from the members.

It was PBA party-list Rep. Jericho Nograles who moved for the approval of the measure, which will amend the Expanded Senior Citizens Act of 2010 (Republic Act 7432).

“Ngayon lang ako pumatol (pumayag) na paki-alaman nyo ang VAT ha,” Salceda said.

At present, Nueva Ecija Rep. Estrellita Suansing, one of the principal authors of the measure, said senior citizens were given 5% discount provided that the consumption does not exceed 100 kiloWatt hours for electricity and 30 cubic meters for water.

“The pandemic has put many of our countrymen in financial insecurity. The proposal would most definitely benefit our senior citizen-consumers who are mostly only relying on their pensions and the contribution of their children who are still living with them,” Suansing said.

Under the measure, the discount will be increased to 10% provided that the electricity consumption does not exceed 150 kWh for electricity and 30 cubic meters for water.

The measure also provides VAT exemption for both the electricity and water bills.

Senior Citizens committee chairperson Rodolfo Ordanes, who sponsored the measure, said this would give some relief to poor senior citizens.

“Makatulong man lang tayo na mapagaan kahit papaano ang dalahin ng ating mga senior citizens na marami ng sinusuong na pagsubok sa kanilang araw-araw na gastusin lalong lalo na sa usapin ng kanilang kalusugan,” Ordanes said.

The Department of Finance (DOF) and the Bureau of Internal Revenue (BIR) opposed the proposal.

Lyonel Tanganco of DOF said the government will be losing around P5.5 billion in revenue from the implementation of the proposal.

Tanganco also cited the measure’s inconsistency with the objective of the Tax Reform for Acceleration and Inclusion (TRAIN) law to improve the efficiency of VAT collection and possible tax leakages and more complicated tax administration.

“One possible leakage is when households continue to enjoy the proposed benefit even if the declared senior citizen under whom utilities are registered is no longer living,” Tanganco explained.

APEC party-list Rep. Sergio Dagooc said he is supportive of the proposal but expressed apprehension since the discount given to senior citizens will just be passed on to other electricity consumers.

“I have no problem with the VAT exemption…. However, the discounts (given to senior citizens) will be paid by non-senior citizens” Dagooc noted.

The post ‘Makatulong man lang tayo’: Higher discount, VAT exemption for senior citizens’ power, water bills approved by House panel first appeared on .

Source: Latest Politics News Today (Politics.com.ph)