4 Oct 2016
PHILIPPINES: Tax Cuts for Low Earners Set to be Funded by Wider VAT Imposition
Tax cuts for the lowest earners are to be introduced in a staged programme between 2017 and 2019. This proposed tax change was submitted to the Congress for discussion on 26 September. In a bid to make up any shortfall in tax revenue as a result of this change, VAT will be extended across a number of new categories, leaving only basic foods, education and health-related items exempt. Taxes on petrol and certain classes of automobiles are also likely to rise.