Bernardo M. Villegas
Recent Articles
Need to Broaden VAT Base
published: May 30, 2017

Emerging Markets Leading World Growth
published: May 22, 2017

  Page last updated at 10:58 Asia/Manila, Tuesday, 06 June 2017 PH
Need to Broaden VAT Base
           The imposition of the Value Added Tax (VAT) during the presidency of Gloria Macapagal Arroyo was a very positive factor in the attainment of fiscal discipline or reduction of the government budget deficit to safe levels below the maximum allowable of 3% of GDP.  It was a politically unpopular move but the leadership during that time has to commended for going against populist pressures to promote the common good.  Once again, the Duterte Administration is faced with the challenge of going against a popular outcry against the move of the Department of Finance to recommend to Congress to limit VAT exemptions so as to broaden the base to enable the Government to raise the necessary funds for a more aggressive funding of infrastructures as well as the significant increase in the budgets for public education and health, two of the most vital expenditures to address mass poverty in the Philippines.