TUCP urges Senate and Congress to exempt basic commodities from the VAT

The Trade Union Congress of the Philippines (TUCP) today urged members of Congress to shield the poorer sectors of society from the effects of the proposed law increasing the value-added tax by 2%.

TUCP strongly suggested that basic commodities, particularly those regularly bought by workers and their families be exempted from paying the tax measure.

Congress yesterday passed on third and final reading the House Bill. The Senate has yet to pass its counterpart bill.

The TUCP enumerated commodities that should be exempted from the proposed law. The list includes rice, canned goods, coffee, milk, sugar, noodles, liquefied petroleum gas, flour, among others.

TUCP said that the proposed law should be shouldered more by the higher segments of society since the poor are already burdened by high prices and wages are kept to the minimum.

TUCP insists that the additional 2% VAT should be imposed on high value and high priced items that are consumed by the more economic ally viable sectors of society.

The TUCP also called on the Senate and the House of Representatives to call for a people’s summit to explain the features of the proposed law.

“At the very least, before anything else, there should be comprehensive public consultation on the issue so that everybody, particularly the masses will have a better understanding of the tax measures,” TUCP said.

“It will also give legislators the pulse of the public on the matter,” TUCP said.

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