Philippines Says Higher VAT Revenue to Offset Impact of Tax Halt

Philippines’ proposal to suspend excise tax on oil imports will reduce government revenues, but impact may be partly offset by higher value-added tax collection as oil prices rise, according to the Department of Finance.

• Government would get 16.2b pesos in additional VAT collection if oil is at $80 per barrel, Finance Undersecretary Karlo Fermin Adriano tells congressional hearing
  • This will partly offset the estimated 55b pesos in revenue losses if excise tax on oil is suspended May through December, Adriano says
• Assuming oil is at $100 per barrel, additional VAT collection due to higher prices would be 37.4b pesos; this ...