High prices not enough; IMF urges hike in taxes 03/21/2012

DIOKNO WARNS OF PUBLIC UNREST

High prices not enough; IMF urges hike in taxes

03/21/2012
As if rising prices of commodities were not enough, the prospect of more and higher taxes looms by next year as an International Monetary Fund (IMF) study commissioned by the government had proposed reforms in the local tax system to be fast-tracked that include increases in the so-called sin tax and a possible tax on mobile phone text messages.

The IMF proposals contained in the “Philippines: Technical Assistance Report on Road Map for a Pro-Growth and Equitable Tax System” report also sought the tax rate adjustments to be implemented as soon as possible.

“Many excise rates need to be increased in order to recover the lost revenue which amounts to 1.8 percent of gross domestic product (GDP) since 1997. This revenue loss is due to a lack of indexation of the specific taxes on tobacco and alcohol products, use of old prices in classifying such products, and reduction in excise on petroleum products,” the report stated..... MORE

Source:  The Daily Tribune

URL: http://www.tribuneonline.org/headlines/20120321hea1.html