Economy

Higher cost of goods boost govt's value-added tax collection

The government reported higher value-added tax collections in the first six months of the year against the collections booked in the same period last year as surging commodity prices allowed tax agencies collect for the national coffers, the Finance department said.

Preliminary Finance department data showed that collections with the implementation of the revised value-added tax law of 2005 amounted to P53.3 billion in the first half, P9 billion or 22 percent higher than the P43.7 billion collected in the same period last year.

The Bureau of Customs collected P28.71 billion in value-added tax from January to June, 20.6 percent higher than the P23.8 billion collected in the same months last year.
 

BSP: Raw material prices to stay high

Non-oil commodity prices are expected to stay high and help push Philippine inflation above official targets for 2008 and 2009, the Bangko Sentral ng Pilipinas (BSP) said Friday.

"Second-round effects have set in, as evident in the surge in core inflation, and a rise in inflation expectations has been perceptible from surveys ..." BSP said in a quarterly report.

It said headline inflation rose to 9.7 percent in the three months to June compared to 5.6 percent in the first three months of the year.
 

Another double digit inflation expected in July--NEDA exec

Inflation "has not yet peaked" and will continue to rise, the National Economic and Development Authority deputy director general Augusto Santos said Thursday.

Santos made the presentation before the Senate on the impact of increasing oil prices.

With inflation at 11.6 percent in June, "we see another double digit inflation" in July, he said.
 

Q2 GDP growth seen around 5.7% on year

The economy likely grew around 5.7 percent in the April to June quarter from a year ago, outpacing a 5.2 percent expansion in the first quarter, a senior government official said on Thursday.

Consumption, which makes up about 70 percent of the economy, defied rising inflation with support from continued strong flows of remittances from Filipinos working overseas, Augusto Santos, deputy director general at the state economic planning office, told Reuters.
 

'P1.4-trillion 2009 budget is 2010 campaign kitty'

Former National Treasurer Leonor Briones on Tuesday said that the P1.4 trillion proposed national budget for 2009 may well be regarded as the administration's campaign fund for the 2010 national and local elections.

Briones, a professor of the National College of Public Administration and Governance (NCPAG) at the University of the Philippines-Diliman, said that the warm reception of administration allies during the President's State of the Nation Address (SONA) Monday mirrored their anticipation of receiving allocations that would fund numerous projects that could be used to woo votes in 2010.

"The 2009 budget is clearly an election budget. So, tingnan natin kung saan ba mapupunta yung P1.4 trillion... bantayan pareho ang revenues at saka 'yung expenditures kasi at the end of the day, tayo rin naman ang magbabayad," Briones said.
 
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