Philippines Suspends VAT on Exporter Transactions

The Philippines recently suspended a 12% value-added tax on formerly zero-rated exporter transactions, the Hong Kong Trade Development Council reported Aug. 6. The imposition of the VAT in June “sparked widespread controversy” and was suspended because of concerns that it burdened exporters and hurt the country’s competitiveness, HKTDC said. All relevant exporter transactions will be “restored to their zero‑rated status for the foreseeable future.”