There should be a review of existing tax laws – like the expanded value added tax (eVAT) to increase the take-home pay of workers, Cavite 2nd District Rep. Lani Mercado-Revilla said on Wednesday.
Revilla, in a privilege speech during the House of Representatives’ plenary session, said that a review of the Tax Reform for Acceleration and Inclusion (TRAIN) Law and the eVAT would bode well for the middle class, which she described as the economy’s backbone.
Despite the country’s economy relying on the middle class, Revilla said they are one of the ‘most heavily taxed and least supported sectors.’
‘Who are the middle class? They are the sector of society considered as the backbone of the country’s working population, we usually hear them appealing and complaining about the government, they are the ones working daily, considered as weather-proof, and their taxes fuel the country’s social aid programs,’ Revilla said.
‘It is estimated that 40 percent of our population are from the middle class [.] but it is not automatic that if you are from the middle class, you are living comfortably, you are from a vulnerable sector because you do not have a safety net, you are one medical emergency or family health crisis away from falling into the poverty line,’ she added.
Revilla said that several of her constituents from Cavite have complained about high expenses, prompting them to ask for tax breaks or reprieve.
‘(A resident from Bacoor town) says her family’s needs would not be covered by a monthly income of P30,000 pesos, as more than half or P18,000 only go to food, electricity, internet connectivity, and other utilities. Another P2,000 also goes to their transportation expenses, which means they have no savings. She feels the government is not paying attention to their struggles,’ Revilla relayed.
‘(For another resident from Molino), she is heavily taxed by the government, she wants that the tax deducted from her monthly income of P38,000 be reduced, or maybe remove VAT as their salaries to buy food and other needs have been taxed already,’ she added.
According to Revilla, helping middle income families may also result in helping overseas Filipino workers (OFWs), as most of the households from this sector are aided by migrant workers.
‘And if we are talking of their contribution, we should include in these conversations our OFWs, because they sacrifice a lot by working from afar just to help their families and our economy. Let us remember that a lot of middle income families are OFW families also,’ she said.
‘Let’s start by reviewing the TRAIN law and study options for lowering income taxes. Let’s face it, our people clamor for transparency as to where their taxes go. People think that their taxes only go to corruption, and it’s painful. We can start rebuilding trust by giving back to our people their taxes being one. We must remember that what we may lose in revenue, we can still redeem in increased consumption,’ she added.
This is not the first time that a lawmaker proposed to lower or suspend VAT and other taxes. Batangas 1st District Rep. Leandro Legarda Leviste asked the House committee on ways and means to discuss House Bill (HB) No. 4302 or the proposed VAT Reduction Act of 2025 – which seeks to bring down the VAT from 12 percent to 10 percent.
Leviste last September filed HB No. 4302 in a bid to help Filipino families cope with rising prices of goods.