Senator Robinhood “Robin” Padilla is pushing for the passage of Senate Bill No. 1450, or the “Bawas Buwis, Ginhawa para sa Pilipino Act,” which seeks to abolish the Value-Added Tax (VAT) system amid continued increases in the prices of basic goods and services.
The renewed push comes as Filipino households continue to struggle with rising costs of food, transportation, electricity, fuel, and other essential commodities. While inflation rates fluctuate, many families remain burdened by persistent price increases that erode purchasing power
Padilla said the current economic conditions make it necessary to ease the tax burden on consumers, noting that VAT is embedded in most goods and services purchased daily.
“Habang patuloy na tumataas ang presyo ng pagkain, kuryente, tubig, pamasahe at iba pang pangunahing pangangailangan, hindi makatarungan na patuloy ding pinapatawan ng 12 porsiyentong VAT ang ating mga kababayan. Sa panahon ng mataas na inflation, dapat gumaan ang pasanin ng mamamayan, hindi nadadagdagan,” Padilla said.
He stressed that low- and middle-income households are most affected by inflation, as a larger share of their income goes directly to basic necessities.
“Ang pinakamalaking naaapektuhan ng inflation ay ang karaniwang manggagawa, magsasaka, mangingisda, at mga pamilyang araw-araw na nagtitipid upang maitawid ang kanilang pangangailangan. Kung nais nating tulungan sila, dapat nating bawasan ang mga buwis na direktang nagpapataas ng presyo ng mga bilihin,” he added.
Senate Bill No. 1450 proposes repealing provisions of the National Internal Revenue Code related to the imposition, administration, and collection of VAT, and replacing it with alternative revenue measures. These include selective excise taxes, digital economy levies, windfall profit taxes, and other income-based systems intended to be more progressive and equitable.
Padilla said removing VAT would help increase the purchasing power of Filipino households and allow families to retain more of their income for basic needs.
“Kapag nabawasan ang buwis sa konsumo, mas maraming pera ang maiiwan sa bulsa ng mga Pilipino. Mas marami silang maipambibili ng pagkain, mas may maitatabi para sa edukasyon at kalusugan, at mas magiging handa silang harapin ang mga hamon ng tumataas na gastusin sa araw-araw,” he said.
He also argued that lower consumption taxes could stimulate economic activity by encouraging spending and supporting small businesses that rely on consumer demand.
“Kapag mas may kakayahang gumastos ang mamamayan, mas umiikot ang ekonomiya. Nakikinabang hindi lamang ang mga pamilya kundi maging ang maliliit na negosyo na siyang gulugod ng ating ekonomiya,” Padilla said.
The bill’s explanatory note states that VAT has evolved into a regressive tax burden that disproportionately affects low- and middle-income Filipinos by raising the cost of basic commodities, utilities, fuel, and essential services. The measure seeks to establish a simpler, more equitable tax system to advance social justice and economic relief.
“Sa gitna ng patuloy na pagtaas ng presyo ng mga bilihin, panahon na upang suriin kung ang ating sistema ng pagbubuwis ay tunay na nagsisilbi sa kapakanan ng mamamayan. Ang Bawas Buwis, Ginhawa para sa Pilipino Act ay isang hakbang tungo sa mas makatarungan, mas makatao, at mas makabuluhang sistema ng pagbubuwis para sa bawat Pilipino,” Padilla said.