Good news Persons with disabilities (PWDs)! We are now exempted from paying value-added tax (VAT) on certain goods and services. Do you remember how Dept of Finance opposed this exemption? Finally the House of Representatives approved on third and final reading House Bill 1039 which amends the “Magna Carta for Persons with Disability.”
Date Filed: February 3, 2014
Bill Title: AN ACT EXEMPTING PERSONS WITH DISABILITY FROM THE VALUE-ADDED TAX ON CERTAIN GOODS AND SERVICES, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7277, AS AMENDED, OTHERWISE KNOWN AS ‘MAGNA CARTA FOR PERSONS WITH DISABILITY’, AND FOR OTHER PURPOSES.
Under the bill, VAT exemption will apply on medical and dental services; purchase of medicines in all drugstores; public railways, skyways and bus fare; admission fees charged by theaters, cinema houses, concert halls, circuses, carnivals and other places of culture, leisure and amusement and all services in hotels and similar lodging establishments, restaurants, and recreation centers.
PWDs may avail of the 20 percent discount and VAT exemption upon submission of proof of entitlement such as identification cards.
Leyte Rep. Ferdinand Martin Romualdez, author of the bill, thanked his colleagues for approving the measure on Tuesday and urged the senators to consider immediate action for the said proposal.
“Persons with disability effectively enjoy only P12 for every P100 worth of good or service because the law does not exempt them from VAT, which is imposed on the net value of the good or service or 10 percent of the P80 after deducting P20, representing 20 percent discount granted in RA 9442, for every P100 worth of goods or services purchased,” Romualdez said.
“This will extend benefits to PWD who are in dire need of support from the government because of their condition in life. I am thankful for their response to my proposal,” Romualdez said.
The lawmaker noted that the bill is a n “equalizing measure” among PWDs and senior citizens who are also exempted from VAT as provided by RA 9994.
Source:
PhilStar.com
I think, Senior Citizens should also be included in the VAT exemption, considering that that we have paid so many tax already during our employment period or during our working days. It is but proper that we are free of this VAT already considering that some of us does not have a fixed sources of income anymore. Our income and pension is even not enough for our daily expenses and maintenance.