‘No turning back’ from 12% VAT next year
‘No turning back’ from 12% VAT next year
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Malacañang on Tuesday said it was bent on raising the expanded value added tax rate next year to 12 percent from 10 percent.
Press Secretary Ignacio Bunye said the first round of collection of the 10 percent VAT late this year has proven to be a “harbinger of fiscal stability, confidence, investments, and jobs.”
“The two percent [age point] increase will bring us closer to economic takeoff and there is no turning back from it,” he said.
Under the expanded VAT law, the government will raise the tax rate if the ratio of VAT collection to gross domestic product for this year exceeds 2.8 percent or if the national government deficit exceeds 1.5 percent of GDP.
If one of the conditions is met, the 12 percent on goods and services will take effect beginning February, Finance Secretary Margarito Teves earlier said.
More: money.inq7.net