Manila, Philippines (PNA) — Malacañang clarified on Thursday the administration of President Benigno S. Aquino III is not prioritizing the proposed removal of the value added tax (VAT) exemption currently being enjoyed by the country's senior citizens.

Presidential Spokesman Edwin Lacierda said that the proposal raised by Senator Sergio Osmena III will be studied carefully by the Department of Finance (DOF) and the Bureau of Internal Revenue (BIR).

According to Secretary Lacierda, Malacañang will wait for the recommendations of the DOF and the BIR regarding the proposal to remove the 12 percent VAT exemptions of the elderly through the implementation of the Expanded Senior Citizens Act.

Senator Osmena, chairman of the Senate committee on banks and financial institutions, proposed the removal of the VAT exemption of the senior citizens because the government, he noted, is losing P100 billion in tax collections.

However, Senator Pia Cayetano, the principal author of the Expanded Senior Citizens Act, said that Osmena’s statement was "sweeping and unfair."

She added that Osmena should not "train his eyes solely on lost revenue due to the exemptions enjoyed by the senior citizens."