11.17.22

Proposal of exempting VAT from basic goods

In a recent bill (House Bill-5504), the House of Representatives urged the government to exempt basic goods from VAT, including bread, raw and refined sugar, canned goods, instant noodles, biscuits, cooking oil, salt, laundry detergents, firewood and charcoal, candles, and drugs labelled “essential” by the Health Department.   

HB 5504 aims to ease the economic burden of rising prices and a falling peso for ordinary Filipinos.  As lead representative of this bill, Arlene Brosas, Assistant Minority Leader, pointed out that: “Removing the 12-percent VAT on basic goods consumed by poor families on a regular basis will dramatically ease their economic suffering amid skyrocketing prices, massive joblessness, and depressed wages”.   

Additionally, she noted that the revenues lost under the proposed VAT exemption could easily be recouped by imposing a wealth tax on the wealthiest Filipinos.  

El cumplimiento es complicado

¿Desea obtener más información sobre cómo Tungsten Network facilita el proceso de cumplir con los requisitos?

Browse Philippines updates

Tax on foreign digital service provider
  • Actualizaciones de los países
Filipinas
VAT exemption on medicines
  • Actualizaciones de los países
Filipinas
Proposal of exempting VAT from basic goods
  • Actualizaciones de los países
Filipinas
200 more medicines exempted from VAT
  • Información del tipo de IVA/IBS
Filipinas
Change in permit to use CAS
  • Actualizaciones de los países
Filipinas
Postponement of e-invoicing pilot project
  • Información de la normativa
Filipinas
Update on pilot project
  • Información de la normativa
Filipinas