BUSINESS
Advocates Philippines
Additional Tax Measures to boost Marcos' Development Agenda
Photo credit: DOF
The Philippine government is aiming to boost revenues to finance its socioeconomic development agenda, with the Development Budget Coordination Committee (DBCC) projecting revenues to reach PHP6.6 trillion in 2028.
The DBCC, headed by Finance Secretary Benjamin Diokno, is pursuing additional tax measures to supplement the reforms under the Medium-Term Fiscal Framework (MTFF), with the revenue impact of these measures expected to take effect starting 2025.
The tax reforms include the imposition of higher excise taxes on sweetened beverages, rationalization of the Motor Vehicle Road User’s Tax, and reforms to the mining fiscal regime. The government is also implementing the Passive Income and Financial Intermediaries Taxation Act (PIFITA), imposition of value-added tax (VAT) on digital service providers, imposition excise tax on single-use plastics (SUP), and imposition of excise tax on pre-mixed alcohol beginning in 2024.
Tax revenues are expected to increase from PHP3.5 trillion in 2023 to PHP6.4 trillion in 2028, with a tax effort that will increase from 14.4 percent in 2023 to 16.8 percent in 2028. These measures are projected to bring an average annual increase of PHP512.7 billion to the country's revenues.
The DBCC's announcement was made during a press conference on April 24, 2023, where DBM Secretary Amenah Pangandaman, NEDA Secretary Arsenio Balisacan, and BSP Deputy Governor Francisco Dakila Jr. served as panelists. With these tax measures, the government hopes to achieve its development goals, including investments in infrastructure, social services, and poverty alleviation programs.
The DBCC, headed by Finance Secretary Benjamin Diokno, is pursuing additional tax measures to supplement the reforms under the Medium-Term Fiscal Framework (MTFF), with the revenue impact of these measures expected to take effect starting 2025.
The tax reforms include the imposition of higher excise taxes on sweetened beverages, rationalization of the Motor Vehicle Road User’s Tax, and reforms to the mining fiscal regime. The government is also implementing the Passive Income and Financial Intermediaries Taxation Act (PIFITA), imposition of value-added tax (VAT) on digital service providers, imposition excise tax on single-use plastics (SUP), and imposition of excise tax on pre-mixed alcohol beginning in 2024.
Tax revenues are expected to increase from PHP3.5 trillion in 2023 to PHP6.4 trillion in 2028, with a tax effort that will increase from 14.4 percent in 2023 to 16.8 percent in 2028. These measures are projected to bring an average annual increase of PHP512.7 billion to the country's revenues.
The DBCC's announcement was made during a press conference on April 24, 2023, where DBM Secretary Amenah Pangandaman, NEDA Secretary Arsenio Balisacan, and BSP Deputy Governor Francisco Dakila Jr. served as panelists. With these tax measures, the government hopes to achieve its development goals, including investments in infrastructure, social services, and poverty alleviation programs.
Apr 25, 2023
