BIR cancels elderly’s VAT-free utility bills 09/19/2010

BIR cancels elderly’s VAT-free utility bills
09/19/2010
The government has started penalizing senior citizens for its inability to raise revenues.

A few days after Malacañang said it would not give priority to a proposal to remove the 12 percent value added tax (VAT) exemption enjoyed by the elderly, the Bureau of Internal Revenue (BIR) had stricken off such privilege on water and electricity bills.

The BIR had issued Revenue Regulation (RR) 8-2010 canceling the VAT exemption privilege on utility bills for senior citizens provided under RR 7-2010. 

Internal Revenue Commissioner Kim Jacinto-Henares said the privilege was withdrawn to reduce government tax losses as a result of the implementation of the Expanded Senior Citizens Act of 2010. 

Under the law, the elderly are not only granted 20 percent discount on purchases of wide range of goods and services, but are also exempted from paying the 12 percent VAT, thus bringing total discounts to 32 percent, according to Henares. 

Under Section 5 of the Senior Citizens Law, the elderly are granted special five percent discounts in their electric and water bills provided consumptions do not exceed 100 kilowatthours (kwh) for electricity and 30 cubic meters of water per month..... MORE

Source:  The Daily Tribune

URL: http://www.tribuneonline.org/headlines/20100919hed3.html