By Ruth Abbey Gita-Carlos | Philippine News Agency
The government is studying possible reforms in excise and health taxes to offset an estimated P66 billion in foregone revenues from President Ferdinand R. Marcos Jr.’s proposed tax relief package, Malacañang said Thursday.
Speaking to reporters, Palace Press Officer Claire Castro said the Department of Finance (DOF) is still evaluating tax measures that could help recover revenue losses while ensuring that the country’s investment climate remains attractive.
“Sa ngayon po ay pinag-aaralan na po ng DOF ‘yung mga tax measure, at ang posible na maaaring magkaroon ng pagbabago o reporma ay ‘yung excise and health tax cases… na maaaring mag-offset sa maaaring mawala na revenue ng gobyerno na nagkakahalaga nga ng P66 billion,” Castro said.
Castro said the government recognizes that the projected revenue loss is significant because it could be used to fund various government projects and programs.
She assured the public that all proposed measures would undergo thorough study.
“Ina-assure po ng gobyerno at ng pamahalaan na lahat po ng measures ay dadaan sa pag-aaral para hindi po naman masyadong maapektuhan din iyong ibang mga investors natin at mas maganda ang maidulot nito sa ating mga kababayan,” she said.
Castro said higher taxes on products such as vaping products, sugary drinks and single-use plastics are among the measures being considered to offset possible revenue losses.
She, however, said the government has yet to estimate how much revenue each proposed tax measure could generate, noting that the proposals are still under evaluation.
She said the administration is considering all possible options to finance the tax relief package aimed at helping middle-income earners.
“Lahat ng proposal kasi pag-aaralan dahil ito nga ay nabanggit ng Pangulo na nais niya talaga na matulungan, especially ‘yung mga middle income,” Castro said.
“Lahat po ito ay gagawin para po maipasang mabilis itong mga tax laws na nais ng Pangulo,” she added.
Castro said the details of the proposed tax measures would be discussed further once the study is completed.
In his fifth State of the Nation Address on Monday, President Marcos Jr. urged Congress to pass measures that would expand income tax exemptions to workers earning not more than P350,000 annually and reduce income tax rates for other workers.
The proposed tax reforms also seek to remove the minimum corporate income tax for small businesses and grant tax amnesty covering unpaid income tax, estate and donor’s tax, value-added tax and related penalties.
