Govt losing over P90B in VAT annually – DoF

The government is losing over P90 billion in potential annual revenues from value-added tax (VAT), which can be avoided by broadening the VAT base—a measure contained in the first package of the Comprehensive Tax Reform Program (CTRP), the Department of Finance (DoF) said on Thursday.

In a tax forum at the Philippine International Convention Center, Finance Undersecretary Karl Kendrick Chua said the Philippines’ antiquated tax code, which contains 59 lines of exemptions from the VAT and 84 special VAT-related laws, have led to massive revenue leaks costing the government an estimated P90.7 billion each year.