Palace not keen on bill seeking exemption of tollways from 12% VAT

Malacañang is not keen on supporting a bill exempting the expressway toll from the 12-percent value-added tax (VAT), which it insisted will have very little effect on prices. Deputy presidential spokesperson Abigail Valte said the Bureau of Internal Revenue’s computations showed a “minimal impact" of the VAT on prices and fares. “I think (BIR) Commissioner (Kim) Henares will disagree... base sa computations na kanyang ipinakita sa amin (Henares' computations showed the impact of the VAT on tollways will be minimal)," she said on government-run dzRB radio. She said Henares had cited an example where eggs delivered by a truck along the South Luzon Expressway will incur an added cost of only P0.0042 – less than one centavo. Earlier, several lawmakers in the House of Representatives have moved to exempt the expressway toll from the 12-percent VAT. House Bill 5185 seeks to amend Section 108 of the National Internal Revenue Code of 1997, as amended, on the VAT on Sale of Services and Use or Lease of Properties. The BIR is to implement the 12-percent VAT on the North and South Luzon Expressways starting October 1, saying that it can generate at least P3 billion in annual revenues. — LBG, GMA News