Solon says Ralph Recto stood in the way of VAT cut

Amid ongoing discussions into the decrease of Value Added Tax (VAT), a solon said this Monday that it was Acting Executive Secretary of the Philippines Ralph Recto that continues to flag any motion that seeks to do so.

Batangas 1st District Rep. Leandro Leviste aired the remarks in an interview with reporters during a break in the Joint Committee hearings on Legislative Energy Action and Development this Monday.

Leviste said that no lawmaker was necessarily against the proposed reduction of VAT but that it was the executive branch of government that blocked its implementation.

“Wala akong nakausap na tutol sa pagbaba ng VAT, kaya ako naniniwala basta i-schedule ang botohan para sa pagbaba ng VAT ay aaprubahan ito ng kongreso,” he explained.

(I did not hear anyone against the decrease of VAT, that is why I believe that when voting for the provision is scheduled it will be approved in congress)

“Pero…ang sinabi sa akin, ang ehekutibo kasi ay tutol pa sa pagbaba ng VAT,” he added.

(However, from what I’ve been told, the executive is against the reduction of VAT)

The lawmaker noted that there had been a letter submitted by the Department of Finance and signed by Recto that claimed that dropping VAT would remove a huge chunk of the country’s tax revenue.

He expressed that both the congress and the national government should consider that VAT affected the poor more than it does other sectors, noting that revenue generation should not be the priority.

“Nanawagan tayo sa buong kongreso at gobyerno na umaksyon ng mas decisively para ibaba ang presyo ng langis at wag natin hayaan ang mga dating mga pananaw na kailangan natin ng malaking government revenues para sa ating government programs,” he expressed.

(We are calling on the entire congress and the government to decisively act to reduce the price of oil and let us not let the dated mindset that we need huge government funding for our government programs)

As an alternative, Leviste posed the implementation of a Billionaire Wealth Tax, stating that he would be open to complying with such a provision if implemented.

He said that the determination of how much a billionaire will contribute should be determined on tangible sources such as properties so that politicians would not be able to hide their actual net worth.