Palace yet to determine if it can raise VAT in 2006
Palace yet to determine if it can raise VAT in 2006
MALACAÑANG has yet to determine if it can implement the additional two percent value added tax (VAT) next year on top of the current 10 percent.
Finance Secretary Margarito Teves said Monday the 12 percent VAT will only be implemented if the sales tax collection to Gross Domestic Product ratio for 2005 exceeds 2.8 percent, or if the national government deficit to GDP ratio for 2005 exceeds 1.5 percent.
Teves said finance records on the VAT collection would be available only by January next year.
He said if one of the conditions is met, the 12 percent on goods and services will take effect beginning February.
The non-implementation of the 12 percent VAT could result to 35 billion pesos annual revenue losses to the government, he said.
The government is hoping to narrow its budget deficit to 180 billion pesos or less this year with additional revenue coming from VAT.
More: news.inq7.net