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E-mailThe Department of Finance (DOF) suggested yesterday that Gloria Macapagal-Arroyo veto the Expanded Senior Citizens Act (RA 7342), saying that it will pose an “extremely difficult task” to the Bureau of Internal Revenue regarding tax collection on senior citizens.
Moreover, the bill, which seeks to exempt senior citizens (60 years old up) from paying the value added tax, would result in an annual revenue loss of P1.7 billion. DOF suggested instead the increase of the existing discount for senior citizens, from 20 percent to 30 percent.
“This counter-proposal would have enabled senior citizens to receive the full amount of the incentive provided for in the proposed new law, even with the 12-percent VAT,” said DOF undersecretary Gil Beltran. The said proposal was rejected by Congress.
Meanwhile, the National Treasury revealed a P52.3-billion loss in government revenues last year due to recent laws that exempt minimum wage workers from the income tax and the 30 percent cut on corporate income tax.
Palace deputy spokesperson Gary Olivar earlier said that Mrs. Arroyo was considering a veto of RA 7342.
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