Connect with us

Hi, what are you looking for?

News

Tax reform laws added P229 billion in revenues in 2021

BW FILE PHOTO

THE implementation of tax reform laws generated P228.6 billion in additional revenues for the government in 2021, exceeding the target by 14%, the Department of Finance (DoF) said on Tuesday.

In a report to Finance Secretary Carlos G. Dominguez III, the DoF Domestic Finance Group said the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) law, the Tax Amnesty Act, and the sin tax reform laws helped boost the tax take.

DoF Undersecretary Valery Joy A. Brion said revenues from TRAIN reached P171.1 billion in 2021, surpassing the target by 8.3%.

She said the sin tax laws, which raised excise tax on cigarettes, heated tobacco products, vapor products and alcoholic beverages, contributed P52.9 billion to last year’s revenues. This exceeded the target by 22.7%.

The Tax Amnesty Act, on the other hand, generated additional revenues of P4.6 billion last year.

The DoF said the implementation of these laws, which are part of President Rodrigo R. Duterte’s Comprehensive Tax Reform Program (CTRP), helped generate P576 billion in additional revenues from 2018 to 2021.

Mr. Dominguez said the tax reform laws plus the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act makes Mr. Duterte’s CTRP nearly 90% complete.

From 2018 to 2021, TRAIN contributed P476.1 billion in additional revenues, while sin tax reforms and tax amnesty added P85 billion and P14.6 billion, respectively.

Mr. Dominguez said the tax reform packages helped the Duterte administration hike infrastructure spending to above 5% of gross domestic product, and increase allocations for healthcare and pandemic response programs.

Security Bank Chief Economist, Robert Dan J. Roces said that the revenue uptake for the said period could have been higher if not for the pandemic.

“But given this, closely tied into the collection is the economic reopening, with higher revenues a function of looser mobility curbs, which in turn is a function of better health outcomes,” Mr. Roces added in an e-mail.

ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said in an e-mail the outgoing administration deserves credit for passing key tax reforms.

“A robust growth momentum provided by previous administrations helped allow authorities the scope to slap additional taxes (income, sin, and excise) as the population was better placed to weather the increase in taxes. This in turn helped secure additional revenues that were used in the various infrastructure, investment, and stimulus projects to help bolster growth momentum further,” Mr. Mapa added.   

Mr. Roces said the incoming Marcos administration should adopt the DoF’s fiscal consolidation plan to improve tax efficiency and revenue effort.

“Additional taxes are never popular and tend to slow overall growth momentum by sapping consumption and investment. With the economy just exiting from the pandemic-induced downturn, perhaps the incoming administration is wary of carrying out relatively unpopular decisions for now,” Mr. Mapa said. — A.M.P.Yraola

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

News

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories...

News

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories...

News

source: https://bit.ly/2GswBI6 ING BANK N.V.-Manila will leave the Philippine retail banking market before 2022 ends, just about three years after its foray into the...

Editor’s Pick

Autonomous warehouse robot maker BotsAndUs has secured $13m (£10.6m) in a seed round led by Swiss venture capital firm Lakestar. London-based BotsAndUs will use...

Editor’s Pick

Porsche Ventures has invested $1.5m (£1.2m) into British cycling insurance provider Laka as part of a wider $13.5m (£10.9m) Series A funding round. Headquartered...

Editor’s Pick

Netflix has announced another round of job cuts as it grapples with slowing growth and increased competition. The streaming giant said it was cutting...

You May Also Like

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Financial Advisors

The healthcare ecosystem is one that has thrived on the cusp of scientific progress, benefitting enormously from the winds of change in the technological...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.