BIR leaves judgment on VAT cut to DOF

The Bureau of Internal Revenue (BIR) said that the national government's revenue collection is expected to decrease significantly should the proposed measure, which removes the 12 percent value-added tax (VAT), be approved and enacted into law.

- 

Noting that a striking portion of the agency's collection is derived from the tax intake, BIR Commissioner Romeo Lumagui Jr. said the decision ultimately rests with the government's economic managers.

“Of course, collections will decrease since a significant portion of the government’s revenue currently comes from the VAT,” he told The STAR. “It is substantial because a large percentage of the BIR’s total collections comes from the said tax program.”