Govt to get P2B more from VAT on toll rates

The value-added tax (VAT) on highway toll will boost the Bureau of Internal Revenue (BIR) collections this year and likely help the bureau meet its money goal. Estimates by the Department of Finance (DOF) showed a 12 percent VAT on toll rates — once fully in place — would give government P1.3 billion to P2 billion in additional revenues. The Toll Regulatory Board (TRB) said on Thursday the VAT on tollway rates would take effect next Oct. 1. The controversial VAT on tollway rates was supposed to be implemented in 2005 when amendments to the law on VAT were passed, but tollway operators opposed the move. However, the Supreme Court last month made a unanimous decision favoring the measure saying that the law allows the imposition of the VAT on all fee-based services. Aside from additional revenues from the VAT on toll rates, the BIR estimated that the back taxes — which represent dues that should have been collected from 2007 to 2009 — would amount to P6.5 billion. The amount was based on Finance Department data. — VS, GMA News