MANILA -- Finance Secretary Carlos Dominguez III on Tuesday disclosed that the Tax Reform for Acceleration and Inclusion (TRAIN) law contributed Php33.7 billion worth of revenues in the first half of 2018.
During a hearing of the House Appropriations panel, Dominguez said revenues from the first tax reform package surpassed its target contribution for January to June this year by Php3.6 billion. He said tax collections, which account for nearly 90 percent of government revenues, went up by 17 percent in the first half this year.
Bureau of the Treasury (BTr) data show that tax revenues as of end-June this year totaled to Php1.254 trillion, 17 percent higher than year-ago’s Php1.068 trillion and three percent higher than the Php1.220 trillion programed for the period.
Tax collection of the Bureau of Internal Revenue (BIR) in end-June this year amounted to Php964.5 million, up 14 percent year-on-year and exceeded the agency’s Php938.7 million goal by three percent.
During the same period, the Bureau of Customs (BOC) surpassed its year-ago collections by 33 percent to Php279.4 billion, which, in turn, is also three percent higher than its Php270.3 billion target for the first half this year.
Dominguez said these figures “are truly promising” and assured lawmakers that “our main revenue agencies are committed to maintain the momentum.”
“This administration is committed to long-term fiscal sustainability. Be assured we will continue to exercise fiscal responsibility and maintain sound fiscal policies to support higher and more inclusive growth,” he said, stressing that “fiscal strategy remains to be prudent, sustainable, and supportive of the government’s development objectives.”
The Finance chief said the proposed tax reforms are eyed to improve the proportion of revenues to gross domestic product (GDP) from 15.6 percent in 2017 to 17.6 percent by 2022. Proportion of tax revenues to total domestic output is also targeted to hit 16.9 percent by 2022 from 14.2 percent last year.
These improvements “will bring our tax effort to about the regional average,” Dominguez said.
For 2019, economic managers have set a revenue goal of Php3.2 trillion and TRAIN along with the proposed Package 1B are targeted to contribute about Php181 billion.
Package 1B involves reforms of tax amnesty and adjustments in the motor vehicle user charge (MVUC).
Aside from Package 1B lawmakers are also deliberating the proposed Package 2, which is aimed at reducing corporate income tax rates and modernizing tax incentives, with the latter targeted to reduce losses; and Package 2 Plus, targeted to reform taxes of sin products and increasing the government’s share from mining.
Recently, Finance officials submitted the proposed tax reform Package 3, which involves reforms in property taxes, and Package 4, which is about the taxes of financial instruments.
Dominguez said the Finance department “will continue implementing the administrative reforms and revenue-enhancing programs and measures to meet our targets and sustain collection growth.”
Aside from making the tax system simplier, fairer and more efficient, the Comprehensive Tax Reform Program (CTRP) ensures funding for the “Build, Build, Build,” infrastructure program as well as on human capital. “The tax reform will bring about growth with equity and heightened productivity that will help us attain our aspiration to be a high-middle-income country by 2022, lifting one million Filipinos from poverty each year,” Dominguez added. (PNA)
