MANILA - Filipinos can look forward to reduced income taxes but they can end up paying more value added taxes on goods and services, Finance Secretary Carlos Dominguez said on Monday.
Dominguez said there will be no new taxes under the Duterte administration but certain taxes will be increased. Current exemptions for the value added tax (VAT) will also be removed.
"With respect to the VAT, the proposal is to eliminate the current exemptions except for the exemptions on food, medicine and education, and secondly to eliminate the zero-rated VAT transactions," the finance secretary told lawmakers during the first day of briefings for the proposed 2016 national budget.
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Dominguez said the proposal to lower income tax rates will result in a loss of P139 billion for individual income taxes and P34.8 billion for corporate income taxes.
The Philippines and Thailand have roughly the same proportions of VAT to gross domestic product, but the Philippines has a higher VAT rate, he added.