Philippines Boosts Tax Collections
March 11, 2014 Taxation in Philippines
MANILA – The tax authorities of the Philippines have achieved impressive results over the course of 2013, and now the country’s leadership plans to secure the future performance with legislation changes.
The total amount of taxes collected in the Philippines in 2013 was equivalent to 13.3 percent of the national GDP, exceeding the previous high of 12.9 percent set in 2012, according to a statement made by the Finance Minister Cesar Purisima over the weekend.
However despite the fact that the current collections are 15 percent higher than in 2012, bringing in more than PHP 1.5 trillion, the Finance Minister still noted that the tax authorities have not reached their own tax collections targets for the year.
According to Cesar Purisima, the previous year was the second in the history of the Philippines, when tax revenues amounted to more than PHP 1 trillion, and the high amount of funds collected will allow the government to actively reinvest into social infrastructure projects and into the development of the agricultural sector.
According to experts, the results achieved by the Philippines in 2013 place the country in second place across the region in terms of tax collections, second only to Malaysia, where tax collections amount to 16 percent of GDP.
Explaining the important steps taken by the government last year in order to achieve the positive results, the Minister said that part of the success can be attributed to the successful start of “sin tax” on alcoholic beverages, as well as increasing the tax compliance of taxpayers in the country.
Speaking about the prospects of the Ministry of Finance and tax authorities in the current year, Cesar Purisima stressed the importance of the legislative reform in the area of regulation and tax administration, which, according to him, is planned to finish by the end of the year.
Photo by: Debbie Tingzon