Friday, July 13, 2007 Antonino bats for exemption of elderly from paying VAT
SOUTH Cotabato Representative Darlene Antonino-Custodio has vowed to push in the 14th Congress the exclusion of senior citizens from coverage of value-added tax (VAT) when purchasing medicines.
Custodio said senior citizens, rightly or wrongly, were not granted exemption from payment of VAT that saw their discount on the purchase of medicines reduced to eight percent.
As it stands, the implementation of the 12 percent VAT on Jan. 1, 2006 effectively reduced the privilege of senior citizens to only eight percent (20 percent discount less 12 percent VAT), which is contrary to the spirit and intent of Republic Act (RA) 7432, Custodio said.
Custodio said her proposed measure seeks to amend RA 7432 known as an act to maximize the contribution of senior citizens to nation building amended by RA 9257 or the Expanded Senior Citizens Act of 2003 as a way to restore their vested right under the law.
She said the bill provides that the VAT will have no effect on the senior citizens act and they shall be entitled to exemption from the payment of VAT on the purchase of medicines for their use and benefits.
