Senate President Pro Tempore Panfilo Lacson cautioned on Sunday that suspending the value-added tax (VAT) could result in more than ₱320 billion in lost revenue, posing risks to the economy.
In a radio interview, Lacson explained that the impact of suspending excise taxes alone could reach ₱200 billion in foregone revenues by 2027. Extending this to VAT, he said, would double the losses.
“Sa excise tax lang, assuming na aabot tayo sa 2027, nasa mga ₱200 billion yung impact sa foregone revenues. May suggestion pa na i-suspend pa ang VAT. Magdodoble iyan, papalo tayo ng ₱320 plus billion kung pati ang VAT i-suspend dahil sa krisis,” Lacson said.
He stressed that while suspending VAT may sound appealing to ease consumer burden, its long-term impact on the gross domestic product (GDP) must be carefully considered.
“Hindi ganoong kasimple kasi tinitingnan lang natin suspend, suspend (VAT) para masiyahan ‘yung mga kababayan natin pero ‘yung impact niya sa gross domestic product natin, sa GDP matindi. In the long term or in the medium term, tayo rin ang tatamaan,” Lacson explained.
For now, Lacson believes suspending excise taxes on petroleum products would be sufficient to provide relief to Filipinos grappling with rising fuel costs.