Cavite 4th District Rep. Kiko Barzaga has proposed the removal of the 12 percent value-added tax (VAT) to help ease the financial burden on Filipino families affected by rising prices.
Barzaga said the measure seeks to provide “financial freedom” to low- and middle-income earners, allowing them to spend more on essential goods and services.
He acknowledged that while taxes are vital to support government programs, it is also important to consider a fairer approach to tax collection.
The proposal has drawn attention in Congress as inflation continues to strain household budgets. The lawmaker believes removing the VAT would directly relieve consumers and stimulate spending in local communities.
Earlier, Batangas 1st District Rep. Leandro Leviste proposed reducing the VAT rate from 12 percent to 10 percent instead of fully abolishing it. Both lawmakers share the goal of reducing consumer expenses but differ on how far reforms should go.
The measure is expected to spark debates on balancing public welfare with the government’s need to sustain funding for social services and infrastructure. If approved, it could mark a major shift in the country’s tax policy.
