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DoF warns VAT rate cut could slash P1 trillion in revenue and risk credit rating downgrade

20 November 2025
in Business
Reading Time: 3 mins read
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DoF warns VAT rate cut could slash P1 trillion in revenue and risk credit rating downgrade
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By Kenneth Christiane L. Basilio, Reporter

THE Department of Finance (DoF) expressed “strong reservations” regarding a proposal to lower the value-added tax (VAT) rate, warning it could cost the government more than P1 trillion in foregone revenues through 2030 and undermine its fiscal consolidation efforts.

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