In a bold and controversial move, Congressman Vat Kiko Barzaga has announced the filing of a bill seeking to abolish the country’s Value-Added Tax (VAT) system, labeling it a “corrupt system” that unfairly preys on the nation’s most vulnerable citizens.
In a public address transcribed and released today, Barzaga launched a stark critique against the current tax structure, arguing that it “syphons wealth from the poor into the pockets of greedy politicians.”
“The value-added tax system shares the burden of funding this administration not just with the financially stable, but also those who are poor, struggling, homeless, and unemployed,” Barzaga stated. He emphasized that unlike income-based taxes, VAT is applied universally to goods and services, regardless of a citizen’s ability to pay, making it a heavy burden on low-income and middle-class families.
The congressman positioned his bill as a direct remedy to this inequity, claiming it would “grant our poor and middle class more financial freedom in spending for the needs of themselves and their families.”
Acknowledging the controversial nature of his proposal, Barzaga urged his fellow lawmakers to reconsider their acceptance of a “bad system.”
“I know this idea may seem radical to my fellow congressmen, but grow accustomed to the bad system. A radical change is what we need if we are going to bring this government back to the Filipino people,” he concluded.
The proposal is expected to face significant scrutiny and opposition in Congress. Economic experts and fiscal policymakers have long considered VAT a crucial and stable source of government revenue, funding essential public services, infrastructure, and social programs. Abolishing it without a clear and robust alternative revenue stream could create a massive budget deficit, potentially jeopardizing government operations.
The announcement has immediately ignited a public debate, with anti-poverty advocates lauding the initiative as a courageous stand for economic justice, while critics warn it could be a fiscally irresponsible populist measure. The bill’s future now hinges on gaining traction in a legislative body that will heavily weigh its social benefits against its profound economic implications.#
“My fellow citizens, I lay upon you an injustice that plagues our most vulnerable constituents, a corrupt system that syphons wealth from the poor into the pockets of greedy politicians. Taxation exists to provide necessary funding needed for government initiatives. However, the government must also decide on the proper sources where such funding shall originate from.
The value-added tax system shares the burden of funding this administration not just with the financially stable, but also those who are poor, struggling, homeless, and unemployed. Unlike other forms of taxation, which has a prerequisite of a certain level of wealth, value-added taxation is applied to all no matter how destitute one’s circumstances are. With all that said, I have filed a bill abolishing the value-added tax system and granting our poor and middle class more financial freedom in spending for the needs of themselves and their families.
I know this idea may seem radical to my fellow congressmen, but grow accustomed to the bad system. A radical change is what we need if we are going to bring this government back to the Filipino people. Have a great day, and may God bless you all.“
