credit/by: ABS-CBN News
Posted at Aug 12 2016 06:01 PM
MANILA - The Department of Finance said Friday a tax system overhaul will not affect the value added tax exemptions of senior citizens and persons with disability.
Some 1.4 million disabled persons are exempted from paying 12-percent VAT under a law signed in March, giving them the same privilege enjoyed by citizens who are at least 60 years old.
“We will broaden our VAT base but that does not include the exemptions for senior citizens and persons with disability,” Alvarez said.
The Department of Finance is set to meet with the House of Representatives’ ways and means committee to discuss the proposed comprehensive tax reform package, Alvarez said.
President Rodrigo Duterte, who took office in June, promised to lower income tax rates and his economic managers said this could be reduced to 25 percent from the current 32 percent.