Pia to Serge: Tax exemption for senior citizens is not ‘idiotic’

Senator Pia Cayetano on Friday criticized fellow senator Sergio "Serge" Osmeña for labeling as “idiotic" the law exempting senior citizens from some taxes, adding that her colleague’s statement was "sweeping" and "unfair." "Calling the law idiotic by sizing it up solely in terms of government’s lost finances while ignoring its many benefits is utterly sweeping and unfair," said Cayetano, who was the principal sponsor of the Expanded Senior Citizens Act. Cayetano was reacting to Osmeña's claim that the government lost about P100 billion from "idiotic" tax exemptions, specifically the 12-percent exemption of senior citizens from the value-added tax (VAT). "If we give tax exemptions to everybody who feels they deserve a tax exemption, we will end up eating, eroding the revenue base of government and that means we won’t be able to educate enough of our children, pay our teachers enough, pay our doctors enough," said Osmeña. But Cayetano said that Osmeña should not "train" his eyes solely on lost revenue due to the tax exemption. "The law brings them (senior citizens) improved purchasing power and better health, and comes as a timely relief, especially amid high prices of drugs and prime commodities," she said. Cayetano likewise said that if her Senate colleague really thinks it's a bad law, he should present his own amendments and alternative proposals. Osmeña, for his part, seemed to be prepared for the comments his statement might make. "Ano kung magalit. Magalit sila kung magalit. Ang sinasabi ko from the macro-economic point of view, from the macro-finance point of view)," he earlier said. (So what if they get angry. So go ahead and be angry. I'm just saying things from the macro-economic point of view, from the macro-finance point of view.)—Kimberly Jane T. Tan/JV, GMANews.TV