Once in effect, some low-cost homes, currently worth between P1.7 million and P3 million, will be slapped with VAT. For developers, VAT is seen further discouraging venture into low-cost shelters. Housing private sector-drivenWorse, the alternative modes of compliance have drawn criticism from the finance department which argued the sector’s tax perks are not translating to more low-cost homes. “In this regard, it is worthy to emphasize that the price of PhP3,199,200 and below pertain to low cost and economic housing. “With the reduction of the VAT threshold, low-cost housing prices will go beyond the affordability level of the average Filipino homebuyer,” they added.

Source: Philippine Star November 18, 2020 06:55 UTC