The Philippine Senate is considering draft Bill No. SBN-1916 (the VAT Reduction Act), which was submitted on 26 February 2026. The draft Bill provides for a reduction in the VAT rate from 12% to 10% on the sale of goods or properties, the importation of goods, and the sale of services, including digital services. Provisions are also included that authorize the President to temporarily revert the VAT rate to 12% for any year in which the national deficit exceeds the targets programmed by the …