MANILA — Gains from the Duterte administration’s tax reform program as well as the massive infrastructure program are reportedly being felt already.
Finance Secretary Carlos G. Dominguez III said collections of the Bureau of Internal Revenue (BIR) in the first quarter of 2018 rose by 15 percent, citing a report from National Treasurer Rosalia De Leon. During the same period, revenues of the Bureau of Customs (BOC) went up 24 percent year-on-year. “Disbursements grew by 31 percent for the same period,” he said.
Bureau of the Treasury (BTr) data showed that in the first quarter of 2017, government spending totalled to PHP615.4 billion.
Revenues of the BIR, which collects around 70 percent of total taxes, in end-March last year reached PHP370.40 billion while BOC’s amounted to Php104.13 billion. BTr has yet to release the government’s first quarter fiscal performance but the Finance chief is optimistic on the sustained rise of both the revenue collections and disbursements. “Our “Build, Build, Build and TRAIN programs are working as planned,” Dominguez said.
Under the “Build, Build, Build” program, the government will spend around Php8 trillion until 2022 to construct necessary infrastructure like roads and bridges, especially in rural areas in Mindanao to ensure that growth would really be inclusive. On a per year basis, infrastructure spending is expected at around PHP1 trillion.
Funds for these projects would be primarily financed by additional tax revenues from the Tax Reform for Acceleration and Inclusion law, which has been implemented since January 2018. Under the first tax reform package, tax rates of individual taxpayers were reduced, exempting not only the minimum wage workers from paying income tax but those with annual income of up to Php250,000.
Its impact on state revenues will be countered by a hike in excise taxes levied on fuel, certain motor vehicles and sugary-drinks. (PNA)
