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(From Philippine Daily Inquirer)
Byline: Charles E. Buban
AT FIRST glance the regulation issued by the Bureau of Internal Revenue on March 11 this year would seem irrelevant to homebuyers and housing loan borrowers.
In fact, Revenue Regulations 12-2003 only mentioned of banks, nonbank financial intermediaries and finance companies that were imposed with, beginning Jan. 1, 2003, a 10 percent value added tax (VAT) on their services pursuant to section 1 of Republic Act 9010.
RA 9010, which set the imposition of a new tax beginning January 2003, imposes VAT on services done in the exercise of a profession; services rendered by banks, and financial institutions; and services rendered by stock, real estate, customs, commercial, and immigration brokers.
Yet, there is another sector that will be shouldering more of the burden that this BIR regulation has imposed: the housing loan borrowers.
Passing on the burden
Subdivision and Housing Developers Association revealed banks and financial institutions will simply pass the tax burden to their borrowers.
With around 400 member-developers, the SHDA is the country's largest …