Senator Bam Aquino has filed a bill seeking to reduce the value-added tax from 12 percent to 10 percent, with the stated goal of easing the financial burden on Filipino households.
The proposal, filed as Senate Bill No. 2047, aims to lower the cost of goods and services by reducing the tax applied to consumption. In the bill’s explanatory note, Aquino pointed to rising prices of fuel, electricity, transport, and food, which have made it more difficult for families to meet daily expenses.
The measure states that the current VAT system places a heavier burden on low- and middle-income households, as it is applied uniformly regardless of income level. By lowering the rate, the bill seeks to provide immediate relief by reducing everyday expenses and helping preserve household purchasing power.
The proposal also cites broader economic considerations, stating that increased consumer spending could help support businesses, protect jobs, and sustain economic activity during periods of uncertainty.
If enacted, the measure is intended to balance government revenue needs with the immediate need to ease cost pressures faced by the public.
