|
Thursday, June 23, 2005
Increased VAT won’t raise prices significantly: DTI
The increase in the value-added tax (VAT) rate to 12 percent from 10 percent will not have much impact on the current prices of goods and services.
This is because the government will implement mitigating measures, such as cutting tariff duties on imported raw materials to two percent from five percent, that will offset the increase in the VAT, Department of Trade and Industry (DTI) Secretary Juan Santos said.
On the sidelines of the Conference and Exhibition for Business and Information and Communications Technology yesterday at the Waterfront Cebu City Hotel and Casino, he also said that increases in the prices of products and services, except of petroleum and power, could be expected only in January next year.
“The two percent increase in the VAT is applicable in January 2006 yet,” he said.
If prices increase, this may be due to the increase in the prices of petroleum and power, Santos added.
The prices of power and petroleum are seen to increase on July 1. The VAT measure signed by President Gloria Arroyo removed exemptions previously enjoyed by some sectors, such as power, shipping and air transport. It also authorized the President to increase the VAT rate to 12 percent next year.(JBN)
(June 23, 2005 issue)
Write letter to the editor.Click here.
Join the Sun.Star message board.Click here. |
|
[return to top]
[home]
[network page]
|
LOCAL NEWS
BUSINESS
OPINION
SPORTS
LIFESTYLE
FEATURE
SUPERBALITA
WEEKEND
|
