Philippine Senate OKs tax reform bill

Philippine Senate

The Philippine Senate has approved on third and final reading its version of the tax reform package that retains VAT exemptions for business process outsourcing (BPOs) and other industries. The Senate version of the Tax Reform for Acceleration and Inclusion (TRAIN) exempts taxpayers with an income of 250,000 and below annually starting 2018. Aside from BPOs, TRAIN also gives VAT exemptions for raw food or agricultural products, health and education, as well as of senior citizens, persons with disability, and cooperatives. The sale of prescription drugs and medicines will be VAT-free for all. The TRAIN bill is set to be tackled by the Senate and the House of Representatives in the bicameral conference committee.