Gibo Teodoro open to raising VAT rate to 15%

[sharkey360]

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Lakas-Kampi-CMD standard bearer Gilberto Teodoro Jr. said on Thursday that he is open to raising the rate of expanded value-added tax (eVAT) from the current 12 percent to up to 15 percent if he wins the presidential race this May.

Speaking before members of the Makati Business Club (MBC), Teodoro said that he agrees with proposals to raise the eVAT given the losses the El Niño dry spell is expected to bring the country, especially in the agricultural sector.

“I agree in principle that we may have to increase consumption taxes for the simple reason that our income taxes and corporate taxes are the highest in this area to the point of being uncompetitive," he said.

Teodoro likewise said that he is studying the proposal of former Budget Secretary Benjamin Diokno to reduce personal income taxes to 25 percent.

The former defense secretary likewise said that he would push for the broadening of the tax base under his administration, as well as the raising of taxes on sin products such as tobacco and alcohol.

“I propose, if need be, that we only increase the base of eVAT. Secondly, if it is unavoidable, (we might have to raise) the rate of eVAT and other excise and specific taxes particularly on sin products," he said.

Teodoro likewise said that he is open to imposing taxes on text messaging, as long as it is beneficial to certain sectors.

“I am opening to the possibility of studying it as long as it is dedicated for certain things, such as information technology, for schools and for research and development, but there are downstream effects of taxes," he said.

Teodoro added however that changes in tax policies must go hand in hand with efficient tax collection and administration.

“Even though you raise taxes, tax policy and tax administration must go hand in hand. Tax administration must be simplified until such time that businessmen can understand how to fill out their own tax return forms," he said.

Source - Gibo open to raising tax rate to 15% under his administration - Nation - GMANews.TV - Official Website of GMA News and Public Affairs - Latest Philippine News

[YellowSubmarine]

There's no problem with this. It's better to be open to possibilities than eating your own words in the end.

[jrconde]

bahalag dako pana ang tax. ang kwarta bulsa ra japon na sa politician.

[boski]

ang uban ani ky uyon

BUT

mostly murag dli jud ganahan.

[samamar21]

as long as dili kawaton ok lang.

[Warnok]

raising tax?..no problem...basta gamiton lng sa tinarong......unya dapat wla na budget ang mga congressman...woman sad.....dapat sa executive branch ra na ang budget...

[trazee]

ok ra, basta sa tinarong!!! EVAT cushioned us from the devastating impact of the global crisis..other countries is on recession and on the verge of economic collapse, but pinas managed to survive..

[sharkey360]

I wonder if Gibo's allies here in Cebu would approve/disapprove of his VAT move.

[YellowSubmarine]

It's still a proposal but if wa na lain choice then why not.

[lestat1116]

mas nindot patas.an ang SIN TAX. SMOKE, ALCOHOL N FAST FOOD.