Pension Reforms, Lowering VAT: Senator Jinggoy Ejercito Estrada inquired about Finance Secretary Ralph Recto’s position on the proposed Military and Uniformed Personnel (MUP) pension reform bill and a measure to reduce the 12% value-added tax (VAT) rate to 10%. Recto stated that the MUP bill would cost the government an additional ₱141 billion over three years before any benefits are realized. He also warned that reducing the VAT rate could trigger a credit rating downgrade, as it would cut ₱300 billion from government revenue and may force borrowing even for basic operating expenses. (Wendell Alinea/ Senate SMU)
Pension Reforms, Lowering VAT: Senator Jinggoy Ejercito Estrada inquired about Finance Secretary Ralph Recto’s position on the proposed Military and Uniformed Personnel (MUP) pension reform bill and a measure to reduce the 12% value-added tax (VAT) rate to 10%. Recto stated that the MUP bill would cost the government an additional ₱141 billion over three years before any benefits are realized. He also warned that reducing the VAT rate could trigger a credit rating downgrade, as it would cut ₱300 billion from government revenue and may force borrowing even for basic operating expenses. (Wendell Alinea/ Senate SMU)
