Duterte lawmakers propose 𝐕𝐀𝐓 𝐒𝐨𝐜𝐢𝐚𝐥 𝐓𝐫𝐚𝐧𝐬f𝐞𝐫 𝐏𝐫𝐨𝐠𝐫𝐚𝐦 𝐭𝐨 𝐬𝐮𝐩𝐩𝐨𝐫𝐭 𝐢𝐧𝐝𝐢𝐠𝐞𝐧𝐭 𝐜𝐢𝐭𝐢z𝐞𝐧𝐬

𝐃𝐮𝐭𝐞𝐫𝐭𝐞 𝐥𝐚𝐰𝐦𝐚𝐤𝐞𝐫𝐬 𝐩𝐫𝐨𝐩𝐨𝐬𝐞 𝐕𝐀𝐓 𝐒𝐨𝐜𝐢𝐚𝐥 𝐓𝐫𝐚𝐧𝐬f𝐞𝐫 𝐏𝐫𝐨𝐠𝐫𝐚𝐦 𝐭𝐨 𝐬𝐮𝐩𝐩𝐨𝐫𝐭 𝐢𝐧𝐝𝐢𝐠𝐞𝐧𝐭 𝐜𝐢𝐭𝐢z𝐞𝐧𝐬

Representatives Omar Vincent S. Duterte and Paolo Z. Duterte have filed House Bill No. 5645, seeking to institutionalize the Value-Added Tax Social Transfer (VAST) for Indigent Citizens Program, a permanent and targeted mechanism aimed at easing the tax burden on the country’s poorest households.

Filed electronically on October 21, 2025, the proposed measure, officially titled the “Value-Added Tax Social Transfer (VAST) for Indigent Citizens Act of 2025,”establishes a comprehensive VAT rebate system intended to soften the regressive impact of consumption taxes on low-income families.

Rep. Omar Duterte emphasized that the VAST Program is anchored on the principles of social justice, fairness, and progressive taxation as mandated by the 1987 Constitution.

“We must ensure the tax system works for the poor, not against them. VAT affects every Filipino, but its burden is heaviest on those who have the least. The VAST Program provides direct, targeted relief so that the most vulnerable households are not left behind as the economy grows,” he said. 

He added that the measure addresses long-standing gaps in how VAT impacts consumption patterns among poor families.

Rep. Paolo Duterte, for his part, stressed that the proposal is not a typical tax refund, but a strategic, expenditure-side social transfer designed to return a portion of VAT revenues to indigent citizens in the form of cash and non-cash benefits.

“This is not just a refund—it is a targeted social protection tool. By institutionalizing VAST, we are ensuring that VAT revenues help uplift the very people who feel its impact the most. This program will directly support poor and near-poor households and give them the assistance they deserve,” he said.

The authors underscored that the existing VAT refund system benefits sellers and businesses, not poor consumers who shoulder the tax.

They said the proposed VAST Program aims to make taxation more equitable and progressive and reduce the financial strain on poor and near-poor households.

It will also help improve social protection coverage and strengthen the government's commitment to inclusive growth.