- World Bank suggests studying VAT exemptions to improve tax collection efficiency
- Many exemptions in the Philippines’ VAT system create distortions and reduce tax collection capacity
- Tax Code lists 29 transactions exempt from VAT, mostly social goods and services
- Forgone revenues from VAT exemptions and incentives could reach PHP539 billion
- Streamlining exemptions can increase tax collection without raising tax rates
- Government aims to collect PHP4.3 trillion in revenues this year, with bulk coming from BIR and BOC
Source: pna.gov.ph
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
