Finance department urges Digong to raise VAT

Finance department urges Digong to raise VAT

The Department of Finance proposes to presumptive President Rodrigo Duterte a new comprehensive tax reform project that inevitably increases the current 12% value added tax (VAT) to 14%.

The finance department said that the reform would also expand the coverage of the value added tax that it would include both persons with disability and senior citizens.

Finance department urges Digong to raise VAT

(Photo credit: mb.com.ph)

To add to that, it also wants the incoming administration to repeal statutes which provide exemption for VAT.

Excise taxes on gasoline, diesel, and other petroleum products are also expected to be higher under the tax reform package.

The department said that to ease the supposed tax burden, the tax reform should also consist of reducing income tax rate from the current 32% to 25%. It would also impose for wage earners, a Php. 1 million income tax exception. Corporate income tax is proposed to be brought down from 30% to 25%.

They are also going to "(p)rovide options of four-year income tax holiday, 5 percent tax on gross income tax earned and 15 percent on net taxable income to export oriented enterprises, and 15 percent tax on NTI to strategic enterprises," but such shall be available only to export-oriented enterprises and strategic enterprises.

The presumptive president earlier slammed allegedly corrupt and incompetent government agencies and their officials.

Rodrigo Duterte said that the three (3) most corrupt government agencies are the Bureau of Internal Revenue (BIR), Bureau of Customs (BOC), and Land Transportation Office (LTO).

He said that it is better for him to abolish said bureaus to end their alleged corruption.

"I'm very sorry pero sabihin ko sa inyo, isa sa pinaka-corrupt na agency ang BIR, Customs, LTO -- iyang tatlong iyan. I-abolish ko na lang para wala na," Duterte said.

The tough-talking, crime busting Davao City Mayor also slammed the Philippine Drug Enforcement Agency (PDEA), claiming that the office cannot fight against illegal drugs for the reason that its very own officials are engaged in narcotics trade.

RELATED: Duterte has a mental disorder. Check it out!

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