- Reducing VAT to 10% could cost the government P330 billion annually and hinder fiscal consolidation.
- A wider deficit may weaken creditworthiness and increase borrowing costs.
- The VAT cut would mainly benefit high-income earners, as the poor spend on VAT-exempt goods.
- Efficient government spending is needed to support middle-income earners.
- Other tax measures include extending the estate tax amnesty until 2030.
Source: philstar.com
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.
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