- Abolishing the 12% VAT in the Philippines could strain public finances and trigger inflation, warns PIDS economist Dr. John Paolo Rivera.
- VAT is a major, efficient revenue source, funding about a quarter of government income; replacing it with taxes on luxury goods, digital platforms, and wealth would leave a significant gap.
- The country lacks the systems needed to effectively enforce wealth and luxury taxes, risking public resource shortfalls and reduced funding for essential services.
- Rivera stresses that tax reform must be paired with transparent, accountable government spending to restore public trust.
- Scrapping VAT at the wrong time could worsen inflation and undermine efforts to stimulate economic growth through lower interest rates.
Source: bnc.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.
Latest Posts in "Philippines"
- Philippine Court Bars VAT Deficiency Collection Due to Expired Three-Year Prescriptive Period
- Philippine Court Clarifies Input VAT Refunds for Zero-Rated Sales in Multinational Branch Case
- E-Invoicing and E-Sales Reporting: Assessing Readiness and Challenges for Full Implementation
- Tiny Invoice Errors Can Derail Big VAT Refunds: Lessons from Philippine Tax Court Cases
- Philippines Court Clarifies Rules on Unutilized Input VAT Refunds for Zero-Rated Sales
