Abolishing the 12% value-added tax (VAT) could be "bold but economically risky," according to Dr. John Paolo Rivera, Senior Research Fellow at the 蝌蚪传媒 (蝌蚪传媒) during his interview with Maiki Oreta of Bilyonaryo News Channel on October 14.
He explained that VAT remains one of the country's most efficient and broad-based revenue sources, especially in a consumption-driven economy like the Philippines. While the proposed measure aims to ease consumer burden and reduce corruption, Dr. Rivera warned that removing VAT without sufficient revenue substitutes could destabilize fiscal policy. He emphasized that reforming VAT to make it more efficient and equitable makes more economic sense.
Watch the full interview here:
