NO PLANS FOR NEW TAXES IN 2024, SAYS RECTO

MANILA — In a recent briefing at the Bureau of Customs in Manila, Department of Finance (DOF) Secretary Ralph Recto announced that the government is committed to meeting its revenue target for the year without resorting to new taxes.

The emphasis will instead be on enhancing the collection efficiency of the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC).

Acknowledging the challenge of reaching the PHP4.3 trillion revenue target for 2024, Recto highlighted the pivotal role of the BIR, responsible for generating PHP3.05 trillion, and the BOC, expected to collect nearly PHP1 trillion. The Bureau of the Treasury is anticipated to contribute approximately PHP300 billion to the overall target.

Recto stated, “Recognizing the current economic challenges, we must not rely solely on imposing new or additional taxes.” He reassured the public that, at present, there are no plans to introduce new taxes, emphasizing the importance of optimizing the collection of existing taxes.

While expressing support for some earlier tax reform proposals, Recto noted that the DOF is refining these suggestions, considering the current inflationary environment. He cited the example of the road users tax bill, indicating a need to temper certain proposals to avoid exacerbating inflation and negatively impacting motorists.

Recto highlighted ongoing efforts to collaborate with the BIR and BOC, urging them to focus on facilitating tax payment and eliminating trade barriers. He emphasized the importance of swiftly implementing the Ease of Paying Taxes Act, pursuing tax cheats, and ensuring fair tax compliance.

To enhance trade facilitation and combat smuggling, Recto announced a collaboration with the Office of the Special Assistant to the President for Investment and Economic Affairs to implement an integrated system for pre-border verification and invoicing.

Recto reassured the public about the manageability of the country’s debt, currently standing at PHP14.5 trillion or approximately 60% of the gross domestic product (GDP). He expressed confidence that the debt-to-GDP ratio would be reduced to 51% by 2028 through a combination of raising revenue and fostering economic growth.

The refined tax proposals will be presented to the Legislative Executive Development Advisory Council and subsequently submitted to the Senate for consideration. Notably, the earlier proposal to tax sweetened beverages and junk foods has already been scrapped by the DOF.

(el Amigo/MNM)