Palace rules out new taxmeasures - Malaya 09.11.2006
MALACAÑANG has ruled out new tax measures but said it will work for full compliance with the reformed value added tax (RVAT) law next year to bankroll its "super region" programs and to expand coverage of the cash-strapped Philippine Health Insurance Corp. (PhilHealth).
"While we will work for the full compliance of the (RVAT) law. We do not intend to expand its coverage. But we will not hesitate to temper the law if there is a need for it," President Arroyo told senators and congressmen in her budget message which contained the proposed P1.13 trillion outlay for 2007.
Arroyo said "basic commodities and socially-sensitive products such as vegetables, meat, fish and the like" will continue to be exempted from RVAT even as she warned that the full force of digital technology will be used to run after evaders.
She also said there is a need to "mitigate the adverse impact" of the 70 percent cap on RVAT input claims by business establishments.
Business is asking that RVAT input payments be 100 percent deductible from output payments.
President Arroyo said bulk of RVAT collections next year will bankroll her "super regions" vision that she outlined in her State-of-the-Nation Address last July 24. The "super regions" vision calls for pump-priming through massive social and infrastructure development programs in provinces targeted for economic take-off.
"A great deal of RVAT collections will be plowed back to social services and infrastructure projects in the super regions," she said.
She said a portion of RVAT windfall would also be channeled to cash-strapped PhilHealth to recruit more indigents under its health coverage in 2007, an election year.
Malacañang said that as of May this year, the number of PhilHealth members reached 15.2 million from 13.4 million in 2005. The 15-million mark was last seen in 2004 when membership sharply rose from 9.9 million in what critics said was a campaign to buy election support for the administration.
Arroyo expects to expand PhilHealth’s coverage to 22.44 million in 2007.
The President warned that the full force of "internet technology" would be used against suspected tax evaders, who were compromising her government’s tax collection efforts.
"We will use information technology to flush out tax dodgers, improve tax take and handle taxpayer queries," the President said.
Some P815 million was allocated to the BIR to put up a super computer network that would wire all its district offices and allied agencies.
The government expects to rake in P75.9 billion in RVAT collection this year and hopes to increase it to P89.4 billion in 2007.
Goods and services under the RVAT list are slapped with a 12 percent tax from the original 10 percent tax when the first expanded value added tax was introduced years ago.
Congress, upon prodding of Malacañang, expanded the list last year by including previously exempted sectors such as the air-sea transport industry and the medical profession.
The President said her government is projecting a revenue collection of P1.12 trillion in 2007, of which P784.1 billion will come from Bureau of Internal Revenue and P235.1 billion from the Bureau of Customs. – Dennis Gadil
"While we will work for the full compliance of the (RVAT) law. We do not intend to expand its coverage. But we will not hesitate to temper the law if there is a need for it," President Arroyo told senators and congressmen in her budget message which contained the proposed P1.13 trillion outlay for 2007.
Arroyo said "basic commodities and socially-sensitive products such as vegetables, meat, fish and the like" will continue to be exempted from RVAT even as she warned that the full force of digital technology will be used to run after evaders.
She also said there is a need to "mitigate the adverse impact" of the 70 percent cap on RVAT input claims by business establishments.
Business is asking that RVAT input payments be 100 percent deductible from output payments.
President Arroyo said bulk of RVAT collections next year will bankroll her "super regions" vision that she outlined in her State-of-the-Nation Address last July 24. The "super regions" vision calls for pump-priming through massive social and infrastructure development programs in provinces targeted for economic take-off.
"A great deal of RVAT collections will be plowed back to social services and infrastructure projects in the super regions," she said.
She said a portion of RVAT windfall would also be channeled to cash-strapped PhilHealth to recruit more indigents under its health coverage in 2007, an election year.
Malacañang said that as of May this year, the number of PhilHealth members reached 15.2 million from 13.4 million in 2005. The 15-million mark was last seen in 2004 when membership sharply rose from 9.9 million in what critics said was a campaign to buy election support for the administration.
Arroyo expects to expand PhilHealth’s coverage to 22.44 million in 2007.
The President warned that the full force of "internet technology" would be used against suspected tax evaders, who were compromising her government’s tax collection efforts.
"We will use information technology to flush out tax dodgers, improve tax take and handle taxpayer queries," the President said.
Some P815 million was allocated to the BIR to put up a super computer network that would wire all its district offices and allied agencies.
The government expects to rake in P75.9 billion in RVAT collection this year and hopes to increase it to P89.4 billion in 2007.
Goods and services under the RVAT list are slapped with a 12 percent tax from the original 10 percent tax when the first expanded value added tax was introduced years ago.
Congress, upon prodding of Malacañang, expanded the list last year by including previously exempted sectors such as the air-sea transport industry and the medical profession.
The President said her government is projecting a revenue collection of P1.12 trillion in 2007, of which P784.1 billion will come from Bureau of Internal Revenue and P235.1 billion from the Bureau of Customs. – Dennis Gadil
posted by brodkaster43 at Lunes, Setyembre 11, 2006
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