GMA orders VAT refund for Japanese contractors.

(From BusinessWorld (Philippines))

Byline: Felipe F. Salvosa II

President Gloria Macapagal Arroyo has ordered the Department of Budget and Management to refund value-added taxes (VAT) paid by projects funded with Japanese overseas development assistance (ODA) money.

This was bared by Trade Sec. Cesar A.V. Purisima after a meeting last week between Arroyo administration officials and Japan's top business group, the Keidanren or the Japan Federation of Economic Organizations.

Mr. Purisima said the VAT refund would cost the government P344 million, to be paid out in "several years."

"[The President] acted quickly [on Keidanren's …