Global Daily Tax News, Bill Tabled To Cut Filipino VAT Rate, (Apr 28, 2026)

Legislation providing for a two percentage point reduction to the Philippines' headline value-added tax rate has been tabled in the nation's Senate.

Senate Bill No. 2047 was tabled on April 23, 2026, by Senator Bam Aquino. The lawmaker said the proposal would provide relief to households, including middle-income taxpayers not in receipt of government subsidies, in response to the ongoing conflict in the Middle East.

Aquino said lowering VAT would directly reduce the cost of goods and services across the economy, including transportation, utilities, and basic commodities, helping preserve the purchasing power of households.

Aquino earlier co-authored and co-sponsored Republic Act 12316, which allows the President to suspend or reduce excise taxes on petroleum products during emergencies. He previously filed a measure seeking the removal of excise taxes on fuel under the TRAIN law.