Senator Loren Legahrda proposed a set of tax reform measures aimed at reducing the cost of basic goods and services, including food, medicine, and electricity, as part of efforts to ease the financial burden on Filipino households.
In a privilege speech delivered on March 17, Legarda presented three bills—Senate Bill Nos. 1851, 1857, and 1963—seeking to lower or remove value-added tax (VAT) on essential items. The proposals include reducing VAT on basic goods and services, exempting key commodities and medical expenses, and removing VAT on selected electricity charges.
Legarda said the proposed reforms are intended to address rising household expenses, citing inflation at 2.4 percent, driven in part by increases in food and non-alcoholic beverage prices.
One of the measures, the Differentiated VAT Rates Act, proposes lowering VAT to 10 percent for essential goods and services while retaining the 12 percent rate for non-essential or luxury items such as high-end vehicles, real estate, tobacco, and alcohol products.
Another proposal, the Murang Bilihin at Serbisyong Medikal Act, seeks to remove VAT on basic commodities, over-the-counter medicines, and medical services. Items covered include canned goods, cooking oil, instant noodles, soap, first aid supplies, and professional medical services.
The third measure proposes removing VAT on electricity charges such as system loss and lifeline subsidies, which are currently passed on to consumers.
Legarda said the existing tax system places a heavier burden on low-income households, describing it as regressive. She also noted that the projected revenue loss from the proposed tax cuts is smaller than the amount lost to corruption, including alleged irregularities in flood control projects.
She called on lawmakers to consider comprehensive tax reform focused on equity and urged the passage of the measures, saying the public expects changes that would directly affect the cost of everyday goods and services.








