Kiko Barzaga vs. Recto’s 12% VAT: Cavite 4th District Rep. Pushes to Scrap Tax
Cavite 4th District Rep. Francisco “Kiko” Barzaga is now trending again. This time, he took to TikTok to announce his plan to abolish the country’s 12% value-added tax (VAT), a move that directly challenges Finance Secretary Ralph Recto’s firm stance on keeping the current rate. In his video, the Gen Z lawmaker told viewers that the tax burden has long weighed on ordinary Filipinos, urging his followers to support his call for a fairer system.
Kiko Barzaga Cites House Bill 5119 in Push to Abolish 12% VAT
Barzaga filed House Bill 5119, a proposal that seeks to abolish the 12% value-added tax on all goods and services. In his explanatory note, Barzaga argues that VAT imposes “the greatest burden on ordinary consumers, particularly low- and middle-income families,” and frames the bill as a necessary response to inflation and inequality. He also says the measure would reduce the VAT rate from 12% to 0%, aiming to ease the cost of living for Filipino households.
In his TikTok video, he shows that some seats are not occupied. He concludes that some congressmen are on vacation. After explaining the intention of his proposed bill, he said, “bye, bye VAT. Meow, Meow.”
@kikobarzagaPusadog Vlog: VAT Abolition Bill 🙀🙀🙀
Why Ralph Recto Pushes the 12% VAT
Finance Secretary Ralph Recto advocated for a 12% value-added tax (VAT) as a means to ensure equitable tax treatment across industries, particularly in the rapidly growing digital economy. The VAT was first enacted in 1988 under Executive Order No. 273 and expanded to 12% in 2006 through Republic Act No. 9337, also known as the Expanded VAT Law. Recto said the measure aligns with the government’s effort to modernize revenue collection and include digital platforms that previously operated untaxed. He added that it supports national development by strengthening the country’s fiscal capacity while maintaining fairness between local and foreign businesses.
Public Reacts to Recto’s 12% VAT Policy
Recto’s 12% VAT policy received mixed reactions from the public. Some consumer groups warned that the tax could strain household budgets, while others accepted it as necessary for funding public services. Online forums reflected concerns over rising costs, calls for greater transparency, and debates about fairness. The move to retain digital VAT also drew attention: the Philippine government recently confirmed that it will continue applying the 12% VAT to foreign digital service providers, even amid pressures from U.S. tariff threats.
Kiko Barzaga vs. Peers’ Criticism Over Conduct and Responding to Ethics Complaints
Earlier this year, Rep. Kiko Barzaga drew criticism from fellow lawmakers and observers for behavioral concerns in the House. A local publication reported that some peers flagged him as acting “unwell,” prompting talk of a possible ethics complaint. Later on, he faced an actual ethics complaint accusing him of “denigrating the government” and misusing his platform. In response, Barzaga defended his conduct, insisting that his criticisms and calls for reform are part of his duty to hold government accountable.
As debates continue over his House Bill 5119, one question lingers, can this Gen Z lawmaker overcome political resistance and succeed in his bid to scrap the 12% VAT?