THE Department of Finance (DOF) pushed for tax reform at the start of the 2024 budget deliberations at the House of Representatives yesterday.
Finance Secretary Benjamin Diokno said the tax measures they want Congress to pass include the excise tax on single-use plastics, rationalization of mining fiscal regime, motor vehicle road users tax, excise tax on sweetened beverages and junk food, tax on pre-mixed alcohol, VAT on digital service providers, carbon taxation, capital market development bill, and the military and uniformed personnel pension reform bill.
“These tax revenue measures will enable us to raise revenues totaling P120.5 billion or 0.5 percent of GDP in 2024 and P183.2 billion or 0.6 percent of GDP in 2026,” Diokno told lawmakers.
He said government eyed nearly doubling the tax revenues by the time President Ferdinand Marcos Jr. steps down.
“In terms of revenue, tax revenue is projected to increase from P3.5 trillion in 2023 to P6.5 trillion in 2028, or from 14.4 percent of GDP to 16.9 percent of GDP,” he said.
Diokno said they are strengthening tax administration in order to achieve the country’s medium-term fiscal framework targets.
“For the BIR (Bureau of Internal Revenue), tax administration measures include the Run After Tax Evaders (RATE) program, Oplan Kandado, broadening of tax base, nationwide raid of illicit cigarettes and vapor products, Run After Fake Transactions (RAFT), and the digital transformation (DX) roadmap,” Diokno said.
Meanwhile, for the (Bureau of Customs), tax administration measures include customs modernization program, fuel marking program, Computer-Aided Risk Management System, and anti-smuggling initiatives, he added. (ABS-CBN News)
