MANILA — Senator Bam Aquino has proposed reducing the value-added tax (VAT) from 12 percent to 10 percent to help cushion the impact of rising oil prices and commodity costs on the middle class amid the ongoing Middle East crisis.

Aquino filed Senate Bill No. 2047, which seeks to amend Sections 106, 107, and 108 of the National Internal Revenue Code of 1997, as amended, to lower VAT on goods and services, including petroleum products, across the economy.

The senator said the measure aims to provide medium- and long-term relief to consumers, particularly the middle class, who are often not covered by government assistance programs.

“Batay sa pahayag ng Department of Energy, posibleng umabot ng anim na buwan hanggang isang taon ang epekto ng krisis sa Middle East sa presyo ng ating produktong petrolyo at mga bilihin,” Aquino said.

“Habang tumatagal ang krisis na ito, hindi lang mahirap ang tinatamaan kundi ang ating middle class, kung saan kabilang ang ating mga kababayang naghahanapbuhay ngunit hindi nakakakuha ng direktang tulong mula sa ating pamahalaan,” he added.

Aquino said lowering VAT would directly reduce the cost of goods and services, including basic commodities, transportation, and utilities, helping ease financial pressure on households.

He added that the proposal could also support economic stability by increasing consumers’ purchasing power, allowing families to sustain spending, which in turn could help businesses and protect jobs.

“By reducing VAT, we take a concrete step toward making the cost of living more manageable and supporting a more inclusive and resilient economy,” he said.

Aquino noted that while the proposed tax cut could provide immediate relief, it should be complemented by stronger tax administration to curb leakages, improve compliance, and maintain government revenues while supporting public welfare.

The senator also cited his role as co-author and co-sponsor of Republic Act No. 12316, which grants the President the authority to suspend or reduce excise taxes on petroleum products during emergencies.

Earlier, Aquino also filed Senate Bill No. 265, which seeks to remove excise taxes on diesel, kerosene, liquefied petroleum gas, fuel oil, and unleaded gasoline under the Tax Reform for Acceleration and Inclusion (TRAIN) Law.