BY IRMA ISIP
BUSINESS favors a cut in the value-added tax
from 12 to 10 percent, the original rate when the system was
adopted in 2002, over the abolition of VAT on oil and power, an
officer of the Makati Business Club said yesterday.
Alberto Lim, MBC executive director, said the
group has not taken an official stand pending the completion of
a study led by former finance undersecretary Milwida Guevara,
but the sentiment is for an across-the-board rate reduction.
Lim said MBC is opposed to the scrapping of
the VAT on fuel because families with a yearly income of less
than P100,000 account for only an estimated 18 percent of
consumption. Those with earnings of P100,000 and above account
for the remainder.
