Rep. Leviste files bill to revert VAT to 10%

Batangas First District Representative Leandro Leviste has filed House Bill 4302, proposing to revert the value-added tax (VAT) rate from 12% back to 10%.

Leviste, vice chairman of the House Ways and Means Committee, urged the committee to prioritize the bill, aiming for its passage by the end of the year.

He stated that lowering the VAT could reduce collections by P200 billion annually, which he believes is manageable compared to the significant increase in VAT collections from P156.67 billion in 2005 to P1.20 trillion in 2024.

Leviste argued that reducing VAT is a direct and efficient method to combat inflation and provide relief to ordinary Filipinos, especially the poor and middle class, as VAT is a regressive tax.

The Philippines currently imposes the highest VAT rate in Southeast Asia at 12%, while neighbors like Vietnam and Cambodia impose a 10% VAT.