BIR misses VAT collection target by P6.37 billion

The Bureau of Internal Revenue (BIR) missed its value-added tax (VAT) collection target by P6.37 billion in the first seven months, collecting P467.04 billion against a P473.41 billion goal.

Despite the shortfall, VAT collections increased by 9.17% compared to the same period last year.

A bill filed by Batangas Rep. Leandro Antonio L. Leviste proposes to reduce the VAT rate from 12% to 10%, citing its regressive nature.

The House of Representatives' committee on ways and means has expressed support for the proposal to lower VAT, according to Leviste.

Committee chairperson Marikina Rep. Miro Quimbo stated that the Department of Finance (DOF) has been informed of the urgency of the measure and will be asked to fast-track its reevaluation.

Quimbo noted that VAT constitutes nearly 25% of total tax collection, necessitating a deep evaluation of the bill.

Leviste thanked the committee for their commitment to tackle the bill, suggesting potential offsets like a wealth tax or reduced government spending.