Recto Warns VAT Cut Could Trigger Credit Downgrade, MUP Bill Costs ₱141B

• Senator Jinggoy Ejercito Estrada asked Finance Secretary Ralph Recto about his stance on the MUP pension reform bill and reducing VAT from 12% to 10%
• Recto said the MUP pension bill would cost the government an extra 141 billion pesos over three years before showing benefits
• He warned that cutting the VAT rate could lead to a credit rating downgrade
• The VAT reduction would remove 300 billion pesos from government revenue
• This revenue loss might force the government to borrow money even for basic operating costs

Source: web.senate.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.

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