Protecting the poor and low income Filipinos: VAT
- VAT threshold for marginal establishment can be increased from 1.9 to around 3 million pesos, thereby exempting their goods from VAT
- Cooperatives below the threshold will still be exempt
- Raw agricultural products will continue to be VAT exempt. Higher oil excise: targeted transfers, pantawid pasada, and jeep modernization.
Combined tax-transfer effect*
After tax-transfer reform,