ERWIN TULFO ADVOCATES FIRST EVAT REDUCTION IN 37 YEARS

Senator Erwin Tulfo has proposed reducing the Philippines’ 12-percent expanded value-added tax (EVAT) back to its original 10 percent, the first cut since it was raised in 2006.

In Senate Bill No. 1552, Tulfo said the reduction would ease the burden on low- and middle-income households while boosting consumption and GDP.

The bill includes a safeguard allowing the President, upon recommendation from the Finance Secretary, to temporarily revert the EVAT to 12 percent if the national deficit exceeds targets.

Tulfo noted that the Philippines and Indonesia currently have the highest VAT rates in Southeast Asia, compared with lower rates in neighboring countries.

The proposal aims to make the tax system more equitable and enhance the country’s competitiveness in the region.

Source: PhilNews24 | January 5, 2026