The House of Representatives, voting 126-11, with no abstention, approved House Bill 3555, the proposed law that seeks to increase value added tax or VAT from 10 percent to 12 percent.
The Bureau of Internal Revenue defines VAT as “a business tax imposed and collected from the seller in the course of trade or business on every sale of properties (real or personal), lease of goods or properties (real or personal) or vendors of services.” According to BIR, it is an indirect tax so ” it can be passed on to the buyer. ”
The Arroyo administration, which is pushing for VAT, keeps on claiming that the proposed increase in the said tax would not affect the ordinary people. On the other hand, the opposition and the activists say otherwise.