Publishing the Full text of the Memorandum from Executive Secretary Eduardo R. Ermita

January 31, 2006 REVENUE MEMORANDUM CIRCULAR NO. 07-06 SUBJECT : Publishing the Full text of the Memorandum from Executive Secretary Eduardo R. Ermita dated January 31, 2006 Approving the Recommendation of the Secretary of Finance to Increase the Value Added Tax Rate from Ten Percent to Twelve Percent TO : All Internal Revenue Officials, Employees and Others Concerned For the information and guidance of all internal revenue officers, employees and others concerned, quoted hereunder is the full text of the Memorandum from Executive Secretary Eduardo R. Ermita dated January 31, 2006: "MEMORANDUM FROM THE EXECUTIVE SECRETARY TO : Secretary, Department of Finance Cc : Commissioner, Bureau of Customs Commissioner, Bureau of Internal Revenue SUBJECT : RECOMMENDATION TO INCREASE THE VALUE ADDED TAX RATE FROM 10 PERCENT TO 12 PERCENT EFFECTIVE FEBRUARY 1, 2006 DATE : January 31, 2006 Pursuant to your recommendation contained in your Memorandum for the President dated January 30. 2006, copy hereto attached, please be informed that the same has been approved by the President, pursuant to Section 4 of Republic Act (RA) No. 9337. CHcESa By authority of the President: (SGD.) EDUARDO R. ERMITA Executive Secretary All revenue officials and employees are enjoined to give this Circular as wide publicity as possible. (SGD.) JOSE MARIO C. BUAG Commissioner of Internal Revenue