PH Senate: VAT increase on unhealthy foods might be implemented

“We are open to that, we are willing to listen. That is the essence of taxation and democracy,” Senate President Franklin Drilon told ABS-CBN News Channel.

 

(Photo credit: nzgba.taxbackinternational.com)

 

The Senate stated that they might consider the 12% increase in Value Added Tax (VAT) and execute a tax on “obesity-and disease- causing” food, like junk food, if demanded by the incoming administration of President-elect Rodrigo Duterte.

According to incoming budget secretary Benjamin Diokno, he discussed with Duterte’s finance secretary-designate Carlos Dominguez on Duterte’s plan to increase the VAT up to a maximum of 15%. He also said that the timing of the VAT adjustment could be two years into the Duterte administration after income tax and a higher VAT.

Drilon also stated that the Duterte administration’s collection performance should be equal to Bureau of Internal Revenue (BIR) Commissioner’s, which has doubled revenue collections in five years since 2012. “Certainly, they cannot collect less. Revenues are the lifeblood of the nation,” said Drilon.

 According to outgoing President Benigno Aquino III, the highest revenue collection on record was during the previous administration at P778.6 billion on 2008.

“We needed only five years to match, surpass, and almost double our predecessor’s record high,” he said.

 

Source: Philippine Star