The government was recently called to immediately repeal Revenue Regulation (RR) 9-2021 issued by the Bureau of Internal Revenue (BIR).
The regulation would impose 12-percent value-added tax (VAT) on goods and services that are previously zero-rated.
In a joint press briefing Tuesday, Information Technology and Business Process Association of the Philippines (IBPAP) president Rey Untal said this new BIR regulation is “hurtful and harmful to businesses” since additional tax will be passed on to export-oriented firms.
Under RR 9-2021, goods and services —including raw materials, packaging supplies, and lease of properties, among others— sold to export-oriented firms will no longer be exempted from 12-percent VAT.
“We, therefore, together with our colleagues here in the export industry, urgently put forward our appeal, our call for the immediate repeal of the RR 9-202,” Untal said.