VAT proceeds to form people’s fund
A lawmaker is proposing the creation of a people’s fund from the
proceeds of Value Added Tax (VAT) collections to further promote
public health and education.
Rep. Reynaldo V. Umali (2nd District, Oriental Mindoro) said House
Bill 1142 provides that 30% of all proceeds from VAT shall form the
people’s fund, which shall be used for public education and health.
“The said portion shall be derived from all proceeds from the VAT
after the share of the Bureau of Internal Revenue from actual VAT
collections in excess of its collection goal has been derived,” Umali
According to Umali, the fund shall help close the resource gaps in
teachers’ training and salaries, classrooms and school buildings and
help alleviate problems of substandard government hospitals, and the
lack of medical personnel and equipment.
“To ensure that the people’s fund will cater to the people’s needs,
the President is asked to embark on broad consultations through the
different departments and agencies of government on a 3-year
utilization plan for public education and health,” Umali said.
The President shall submit the three-year utilization plan to Congress
for approval, Umali added.
The proposed People’s Fund bill, which amends the National Internal
Revenue Code, will not diminish the allotment to local government
units from VAT as provided for under the Local Government Code.
The fund shall not be used to augment the maintenance and other
operating expenses of any national government agency; government owned
and controlled corporations, and local government units.
The measure provides that education and health services shall get
fifty percent each from the people’s fund.