The Philippines’ Bureau of Internal Revenue (BIR) has agreed to suspend the implementation of the 12% value-added tax (VAT) on exporters’ raw material purchases and packaging products, said Philippine Economic Zone Authority (PEZA) and Rep. Joey Salceda.
PEZA director-general Charito Plaza disclosed the suspension with a message to reporters saying, “BIR as soon as possible is advised to issue the deferment memo.”
Salceda, the House Ways and Means Committee Chairman, said in a statement that the BIR and Department of Finance (DOF) have agreed to suspend the 12% VAT after a briefing with the agencies and stakeholders. He added that this decision will help the country’s export industry recover.
However, Finance Secretary Carlos Dominguez said that the department is still reviewing the matter and a decision would be reached before July ends.