MANILA, Philippines, September 15 (Eagle News) — President Banigno S. Aquino III on Monday, September 15 said that lowering prevailing income tax rates will lead to fewer government revenues and will only expand tax collection deficit.
The president said that by lowering the income tax rates this might affect the country’s credit ratings.
He also bucked calls to increase value-added tax (VAT) to compensate for the expected government revenue loss due to income rate cuts.
Aquino said that higher vat rates will only increase oil prices, transportation fares and power rates. (Eagle News Service)
