The Department of Finance (DOF) has proposed to president-elect Duterte that raising the VAT to 14 per cent would be a good idea for the country.
Currently those living in the Philippines pay 12 per cent. The DOF also said that expanding that amount to include senior citizens and persons with disabilities is also needed.
The DOF also suggested to repeal all laws providing VAT exemptions, as well as introduce higher taxes on gasoline, diesel and other oil related products.
Under the proposed reform package, only export-oriented enterprises and strategic enterprises could avail the government incentive options available.
The DOF also noted that Duterte should “provide options of four-year income tax holiday, five per cent tax on gross income tax earned and 15 per centon net taxable income to export oriented enterprises, and 15 per cent on NTI to strategic enterprises.”
The DOF also wants to reduce corporate income tax to 25 per cent (currently 30 per cent) – as well as reduce tax burdens, giving Filipinos a reduced tax rate of 25 per cent (currently 32 per cent). They also suggested a 1-million peso income tax exemption ceiling for Filipino wage earners.