President Arroyo on May 24 signed into law the Expanded Value Added Tax (VAT) Act of 2005 (RA 9337), which seeks to raise P80 billion to P100 billion annually in additional revenues to help fund government's development programs.
The law retained the current 10% tax rate but granted Arroyo standby authority to raise the rate to 12% early next year under certain conditions.
Senate President Franklin Drilon and Speaker Jose de Venecia Jr. attended the signing held at Malacaņang's Aguinaldo State Dining Room shortly before the Legislative Executive Development Advisory Council (LEDAC) meeting.
Finance Secretary Cesar Purisima, in a presentation at the LEDAC, said the Bureau of Internal Revenue is supposed to collect P19.81 billion in VAT this year while the Bureau of Customs is expected to collect P8.94 billion, or a total of P28.75 billion in revenues. The figures are expected to rise to P104.23 billion in 2006.
The target date for the issuance of the implementing rules is June 15.
