- The Department of Finance (DoF) is reviewing the OECD’s recommendation to remove VAT exemptions for senior citizens, private schools, and healthcare providers in the Philippines.
- The OECD suggests phasing out these exemptions to help reduce public debt and narrow the budget deficit.
- Business groups argue the government should prioritize addressing tax leakages, corruption, and smuggling over removing VAT exemptions.
- The Philippines’ VAT collection efficiency is low compared to regional peers, with significant leakages in the system.
- Concerns were raised that removing VAT exemptions could negatively impact vulnerable sectors and increase costs for consumers.
Source: bworldonline.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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