Philippine exporters seek exemption from 12% tax on purchases

MANILA (Bloomberg): The Philippines’ largest exporter groups on Tuesday (March 21) urged the government to exempt their local purchases from a 12% value-added tax to help them offer competitive prices in the international market.

A tax regulation implemented in June 2021 began imposing a 12% VAT on sales transactions that were previously not taxed, including purchases of exporters. A month later, the country’s tax agency suspended that rule amid the pandemic and while it reviewed the regulation further.