“I believe the prescription for the 12 percent VAT as an economic medicine has expired. It’s time to lower the dosage,” said Recto, in explaining his stand which runs contrary to that of his close ally in Malacañang, President Benigno Aquino III.
“I’m ready to listen and hear all proposals. I understand that the government, including the Senate, must show some compassion amid rising oil and commodity prices,” added the Senate Ways and Means Committee chairman.
Likewise, Recto objected to a multi-tier VAT rate for different industries, specifically for oil and power but supports an omnibus cut in VAT rate to 10 percent from 12 percent as contained in his proposed measure.
Recto is the principal author of the law on the value added tax (VAT) which was passed in the 13th Congress during the administration of former President Gloria Macapagal Arroyo.
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