In a bold move aimed at providing immediate relief to millions of Filipino consumers, Batangas 1st District Representative Leandro Leviste has called for the prioritization of a bill that seeks to lower the country’s Value-Added Tax (VAT) from 12% to 10%.
During a recent hearing of the House Ways and Means Committee, where he serves as vice chairman, Leviste urged his fellow lawmakers to place House Bill No. 4302 at the top of the committee’s legislative agenda for the 20th Congress. The bill, if passed, could bring down the financial strain on families by slashing VAT collections by an estimated ₱200 billion—a reduction that translates to roughly ₱7,000 in annual savings per household.
“How we will offset these foregone revenues can be the subject of further discussions,” Leviste said during the session, emphasizing the urgency of acting within the year. “We should pass the bill lowering the VAT by the end of this year.”
In response, Committee Chairman and Marikina 2nd District Rep. Miro Quimbo gave his full support. “You will have our super best effort,” he assured.
Leviste argued that lowering the VAT is not just about economic figures—it’s about giving Filipino families more room to breathe financially. “It’s a more efficient way to give Filipinos more disposable income,” he said, pointing to the potential boost in consumption and GDP.
Quimbo echoed this sentiment, noting that any tax reform should be progressive in nature. “We tax those who have the capacity to pay, and we try to lessen the indirect taxes that really hit the poor,” he had previously stated.
House Bill No. 4302 also provides a mechanism for adjusting the timing of the VAT reduction. Under the proposed measure, the President may implement the cut based on the country’s deficit-to-GDP ratio, upon recommendation from the Department of Finance (DOF).
Currently, the Philippines imposes the highest VAT in Southeast Asia at 12%, compared to 10% in Vietnam and Cambodia, 9% in Singapore, and as low as 2.5% in Timor-Leste. The disparity, according to Leviste, underscores the urgency for reform to align the country’s tax policy with regional standards while offering much-needed economic reprieve to the public.
