Malacanang Remains Confident in Congress Approval of VAT Bill

Strategic Insights -

Malacanang officials, led by Press Secretary and Presidential Spokesman Ignacio R. Bunye, expressed confidence in the approval of the Value Added Tax (VAT) bill before the current session of the Congress ends on March 18 for the Lenten break. Despite concerns raised by the furor over the 2005 national budget, Bunye stated that there is enough time for the Senate to pass its version of the VAT, which is expected to raise P82 billion (US$1.5 billion) to put the country's finances in order.

Key Takeaways:

  • Malacanang officials are confident that Congress will approve the VAT bill before the current session ends on March 18 for the Lenten break.
  • The House has already approved two separate VAT measures, one increasing the existing 10 per cent rate to 12 per cent and the other lifting the exemptions from VAT coverage.
  • The VAT is expected to raise P82 billion (US$1.5 billion) that the government urgently needs to put its finances in order.
  • A five-man committee, headed by outgoing Energy Secretary Vince Perez, has been formed to review the Oil Deregulation Law in response to frequent oil price increases.
  • The Perez committee report will be submitted to Congress, which is expected to act on the recommendation as a priority measure.

Statistics:

  • P82 billion (US$1.5 billion) is the expected revenue from the Value Added Tax (VAT) bill.
  • 10 per cent is the existing VAT rate.
  • 12 per cent is the proposed increased VAT rate.
  • March 18 is the deadline for the current session of the Congress to end for the Lenten break.

Sources:

  • Asia Pulse, "Malacanang confident Congress will approve VAT bill before current session ends"
  • (Real-time data was not found in the source material - all numerical data relevant to the story was extracted.)