The Philippines has announced a major tax reform aimed at modernizing its fiscal system and increasing government revenue. The reform, set to take effect in 2025, includes changes to corporate tax rates, value-added tax (VAT) adjustments, and new measures to combat tax evasion.
The government claims the reform will help reduce the fiscal deficit and improve public services. It also aims to simplify the tax code for businesses, making it more competitive with neighboring countries.
Key changes include lowering the corporate income tax rate from 20% to 15% for small and medium enterprises, while increasing the VAT on luxury goods and services. The reform also introduces stricter penalties for tax non-compliance.
The move has been welcomed by some business groups, who see it as a step toward economic stability. However, critics warn that the changes could affect low-income households, particularly with the higher VAT on everyday goods.
