With effect from February 1, 2006, the Government of Philippines has increased the value-added tax rate to 12 percent up from 10 percent.
Under Republic Act No. 9337, otherwise known as the Value-Added Tax (VAT) Reform Law became a law, that allows the President to raise the VAT rate beginning January 1, 2006.
Now the cotton and cotton seeds, fuel and power, domestic passenger transport, electrical cooperatives have been brought under the VAT umbrella and corporate income tax has been raised to 35 percent from 32 percent.
Exports of US cotton for the same period were valued at $19 million.
However, many food and agricultural products remain exempt from VAT assessment.
marketing@alchempro.com
