Ramos to relax new tax

Ramos to relax new tax

MANILA (AFP): President Fidel Ramos has agreed to exempt more
sectors from the expanded value-added tax (VAT) passed last month
in an apparent attempt to ease opposition against the new levy.

Finance Secretary Roberto De Ocampo said that in a meeting
with congressmen and cabinet members yesterday, Ramos reiterated
the VAT was an "important measure" as it was needed to fund local
government projects.

But the government also agreed to exempt more sectors from
VAT, including textbooks, religious articles and small
cooperatives.

Ramos further agreed to exempt small enterprises from paying
tax registration fees required for all businesses.

De Ocampo said government officials had been instructed to
conduct dialogue with various opposition groups calling for the
repeal of the VAT, which was supposed to raise some 8.3 billion
pesos (US$296 million) a year.

Passage of the VAT was deemed crucial for Manila to shrink its
deficits and obtain a new 684 million dollar credit facility with
the International Monetary Fund (IMF).