Solon calls for return to specific tax system By Charlie V. Manalo 04/17/2011

Solon calls for return to specific tax system

By Charlie V. Manalo 04/17/2011

Manila Rep. Amado Bagatsing is calling for the return to the specific tax system rather than the current ad valorem tax system to cushion the impact of rising world oil prices and protect consumers from almost weekly hikes in oil pump prices.

An ad valorem tax is a tax whose rate is based on the value of a product while a specific tax is a tax whose rate is based on a particular quantity of a product rather than on its value.

The value-added tax (VAT) is based on the ad valorem tax system and applies to oil and other products as well as services..... MORE

Source:  The Daily Tribune

URL: http://www.tribuneonline.org/metro/20110417met1.html