- Senator Erwin Tulfo filed a bill to reduce the Philippines’ VAT from 12% to 10% to address inflation and ease the burden on low
- and middle-income households.
- Tulfo argues that the Philippines has one of the highest VAT rates in Southeast Asia, making it less competitive and straining household budgets.
- The bill aims to boost household purchasing power, stimulate consumption, and support GDP growth.
- A safeguard allows the President to restore VAT to 12% if the national deficit exceeds targets.
- The proposal follows Tulfo’s earlier call for a one-month tax holiday to provide relief amid concerns over government corruption.
Source: journal.com.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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