Business sector can absorb VAT increase - energy chief
Business sector can absorb VAT increase - energy chief
Subscribe to Business News SMS Alerts on your mobile phone! Send ON EXTRA BUSINESS to 2207 for Globe, or EXTRA BUSINESS to 386 for Smart.
THE BUSINESS sector can easily absorb the two-percentage point increase in the Value Added Tax (VAT) and thus, should not pass the additional tax burden to the public, a Cabinet official said.
Energy Secretary Raphael Lotilla said the increase was “minimal and the business sector can absorb the additional two percent VAT and not pass it on to the people.”
President Gloria Macapagal-Arroyo met with Lotilla and other members of her economic team in Baguio City to discuss how to effectively communicate to the people the good effects of VAT.
Malacañang has appealed to businessmen to refrain from making the full implementation of the Reformed Valued Added Tax (RVAT) Law next February as an excuse to jack up prices of commodities and services.
The RVAT, which was enforced starting November 1, will be fully implemented in February 2006.
More: money.inq7.net