THE DEPARTMENT of Finance (DOF) has stressed anew that the Duterte administration would keep the value-added tax (VAT) exemptions of senior citizens, but said its implementation would be rationalized.

“Our VAT tax rate is 12 percent and yet we collect as a percentage of GDP (gross domestic product) only 4.2 percent. Thailand whose VAT rate is 7 percent collects 4.2 percent. So in other words we have a lot of exemptions and we have lots of zero-rated transactions. We have to collect on that side,” Finance Secretary Carlos Dominguez 3rd told reporters during a recent chance interview.

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