Bloomberg News

Philippines Maintains 20% Peace Bond Tax, Carandang Says

October 19, 2011

Oct. 19 (Bloomberg) -- The Philippine government is sticking to its position that 35 billion pesos worth of bonds due yesterday were subject to a 20 percent tax on interest income, President Benigno Aquino’s spokesman Ricky Carandang said in a phone interview today.

The government will let the court decide on the issue, Carandang said. Aquino, Finance Secretary Cesar Purisima and Budget Secretary Butch Abad discussed the issue in a meeting today, he said.

The Supreme Court yesterday stopped the government from imposing and collecting the tax. The court ordered the banks to withhold the amount and place it in escrow pending resolution of the case, spokesman Midas Marquez said yesterday.

--With assistance from Clarissa Batino.

To contact the reporter on this story: Joel Guinto at jguinto1@bloomberg.net

To contact the editor responsible for this story: Cecilia Yap at cyap19@bloomberg.net


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