DEPDev Chief Opposes VAT Cut, Citing Risks to Revenue and Fiscal Targets

• DEPDev Secretary Arsenio Balisacan opposes proposals to cut the country’s VAT rate, citing concerns over revenue loss.
• Several bills have been filed to reduce or scrap the 12% VAT, or to grant a one-month income tax holiday.
• Balisacan and Finance Secretary Ralph Recto warn that lowering VAT could lead to massive revenue losses and reduced public services.
• The government aims to reduce the fiscal deficit-to-GDP ratio to 4% by 2028 as part of its medium-term fiscal framework.
• Balisacan emphasizes the need to strengthen tax enforcement to meet fiscal goals and maintain investor confidence.

Source: gmanetwork.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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