Senator Legarda pushes for tax reforms to ease burden on Filipino households

Senator Loren Legarda emphasized that tax reforms should ease the financial burden on Filipino households while ensuring greater accountability in government spending, saying that losses from tax cuts can be offset by curbing corruption.

In a privilege speech delivered on Tuesday, March 17, Legarda presented three proposed measures—Senate Bill Nos. 1851, 1857, and 1963—aimed at reducing the cost of food, medicines, and electricity for ordinary consumers.

“Ang halagang mawawala sa mga tax cuts na ito ay mas mababa pa sa kabuuang nalilimas ng korapsyon tulad na lang ng mga anomalya sa flood control projects na umabot sa trilyong piso,” Legarda said.

She explained that while taxation is essential to sustain government operations, it has increasingly become a burden for low-income earners. With inflation at 2.4 percent, driven in part by a 1.8 percent rise in food and non-alcoholic beverages, she noted that household budgets are under added pressure.

“Hindi mapapatakbo ang isang bansa kung walang buwis na kinokolekta mula sa mga mamamayan. Ngunit kung ang buwis ay halos sinasaid na ang bulsa ng ordinaryong Pilipino, hindi na lifeblood ang tawag dito, dagdag pagdurusa na,” Legarda said.

One of her proposals, the Differentiated VAT Rates Act, seeks to reduce the value-added tax to 10 percent for essential goods and services while maintaining the 12 percent rate for non-essential or luxury items such as high-end vehicles, real estate, cigarettes, vape products, and alcohol.

“Hindi dapat i subsidize ng minimum wage earner ang lifestyle ng may kaya,” Legarda said.

Another measure, the Murang Bilihin at Serbisyong Medikal Act, proposes removing VAT on basic commodities, medicines, and healthcare services. Covered items include over-the-counter medicines, first aid supplies, canned goods, cooking oil, instant noodles, soap, and professional medical services.

“Kaya naman, nararapat lang na wakasan ang pagpapataw ng buwis sa mga basic commodities para sa ating mga kababayan,” she said.

The third bill aims to eliminate VAT on certain electricity charges, including Systems Loss and Lifeline Rate Subsidy, which she argued should no longer be taxed since they are already forms of consumer subsidy.

“Maganda ang adhikain, ngunit mali na tumulong ka na, nabuwisan ka pa,” she said.

Legarda noted that these measures were filed under normal conditions, stressing that such reforms have long been overdue.

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“Mr. President, ang isang minimum wage worker ay nagbabayad ng buwis araw araw. May VAT sa halos lahat ng binibili niya. Buwan-buwan, lumiliit ang suweldong dapat sana ay buo niyang maiuuwi sa pamilya. Tanggapin na natin na ang kasalukuyang tax system ay regressive. Mas malaking proporsyon ang kinukuha nito sa mahihirap, kaysa sa mayayaman,” Legarda said.

She urged lawmakers to pursue a more comprehensive and equitable tax system.

“Tayong mga nandito sa bulwagang ito ay dapat talakayin nang masinsinan ang usaping comprehensive tax reform, hindi bilang isang sukatan ng kita, kundi batayan ng equity sa ating lipunan,” she said.

The senator also underscored the need for government accountability in managing public funds.

“Panahon na para tanggalin sa mga Pilipino ang pasaning ito at harapin ng pamahalaan ang pagsasaayos ng sarili nitong paggastos at integridad,” she said.

Legarda appealed for the swift passage of the proposed measures, saying these could deliver tangible relief to Filipino families.

“Ang tanging hinihingi ng taumbayan ay ginhawang ramdam, pagbabago sa presyong nakikita sa resibo, at patakarang may pakinabang sa hapag kainan, hindi lang sa macroeconomic report,” she concluded.

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