Philippine President Gloria Macapagal Arroyo has signed a law permanently removing documentary stamp tax on the sale, barter or exchange of listed shares to stimulate the market and make it more attractive to investors. The law, signed on June 30, comes at a time when the government is trying to collect more revenues to fund a wider budget deficit of 250 billion pesos ($5.2 billion) this year.
"During a period of heightened risk aversion, bringing down the costs of doing business is a crucial trade-off to attract investments," Philippine Stock Exchange (PSE) president and chief executive officer Francis Lim said in a statement at the weekend.