Rich old folk gain most from tax break - DOF

THE Department of Finance claimed that most of those benefitting from the value-added-tax exemption granted to senior citizens are the rich and middle class that is why it is proposing to limit the old age tax exemption to medicines.

At the hearing of the senate ways and means committee chaired by Sen. Juan Edgardo Angara, DOF undersecretary Karl Kendrick Chua,   said the agency is looking at forgoing VAT exemption of senior citizens for non-essentials because they are mostly benefited by the rich senior citizens since the poor and low income typically buys from VAT exempt stores.