VAT exemption on socialized housing or those units priced at P450,000 and below will be removed upon the introduction of a housing voucher system. Based on the data of the Housing and Urban Development Coordinating Council (HUDCC), the housing backlog reached 5.7 million units in 2016. Sen. Joseph Victor “JV” Ejericto said lifting the VAT exemption could lead to more expensive housing units, making it more difficult for ordinary people to purchase houses. Without VAT exemption, the cost of a socialized housing unit would go up to P500,000 from P450,000 while an economic housing unit will go up to P1.9 million from P1.7 million. Industry players told members of the Senate panel that the imposition of VAT on housing will hurt buyers, particularly the overseas Filipino workers.

Source: Manila Times July 12, 2017 16:07 UTC