Cavite 4th District Representative Kiko Barzaga has filed a bill seeking to abolish the 12% value-added tax (VAT) on goods and services, describing it as an unfair system that weighs heavily on ordinary Filipinos.
Barzaga said VAT affects all consumers regardless of their income, making it a “regressive” form of taxation that punishes even the poor and unemployed. “The Value Added Tax system shares the burden of funding this administration not just with the financially stable, but also those who are poor, struggling, homeless, and unemployed,” he said.
He emphasized that unlike other taxes, VAT does not take into account a person’s capacity to pay, making it harder for struggling families to afford basic necessities. “With all that said, I will file a bill abolishing the Value Added Tax system and granting our poor and middle class more financial freedom in spending for the needs of themselves and their families,” he added.
To offset the revenue that would be lost from scrapping VAT, Barzaga’s proposal includes identifying new sources of government income that are “more progressive, fair, and sustainable.”
“I know this idea may seem radical to my fellow Congressmen here, who grew accustomed to the VAT system, but radical change is what we need if we are going to bring this government back to the side of the Filipino people,” Barzaga said.
