- 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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