House panel OKs tax breaks for elderly, cinema owners

MANILA, Philippines - Legislators on Tuesday moved to reduce the tax burden on senior citizens and cinema owners, setting aside concerns that doing so would reduce revenues at both the national and local levels. The House ways and means committee approved two measures: one protecting a 20% discount for the elderly and another cutting the amusement tax collected from movie house operators. Both bills will now be up for plenary discussion. A still to be numbered substitute measure mandating the discount replaced House Bills (HBs) 405, 503, 677, 1032, 1100, 2100, 2399, 2717, 3183, 3455, and 3835. "The 20% discount is not 20% in reality, it is only about 9%. This is due to the 12% E-VAT (expanded value-added tax) imposition," committee chairman Rep. Exequiel B. Javier (Antique) said. Removing the E-VAT will ensure that senior citizens enjoy a full 20% discount on medical and dental services including medical supplies in all private hospitals and medical facilities; admission fees charged by theaters, cinema houses, concert halls and other similar places of leisure; and transport fares, Mr. Javier said. Ma. Teresa S. Habitan, Finance department director for fiscal policy and planning, said the government disapproved of the measure as it would lead to substantial revenue losses. A 30% discount originally sought, she said, would have cost the government some P63 million. She declined to provide new estimates, saying the new measure scrapping the E-VAT will have to be studied. Also approved Tuesday was a substitute bill to HBs 389, 742, 1250, 2183, 2625, 3505, and 4367. If passed into law, the tax levied on cinema owners would be cut to 10% from 15%. Ms. Habitan said the Finance department was neutral to the bill as it "has revenue implications at the local government level". League of Cities of the Philippines policy unit head Ma. Veronica C. Hitosis said they expected to lose "millions in pesos". — from a report by Jhoanna Frances S. Valdez, BusinessWorld