MANILA – Malacañang is leaving it up to the incoming economic team of President-elect Ferdinand "Bongbong" Marcos Jr. to decide on the proposal of the Department of Finance (DOF) to impose new and higher tax measures, defer personal income tax reductions, and repeal some tax exemptions to raise the country’s revenues and settle debts.
Acting presidential spokesperson and Communications Secretary Martin Andanar made this remark after Finance Secretary Carlos Dominguez III unveiled on Wednesday the DOF’s proposed fiscal consolidation and resource mobilization plan.
The plan aims to “ensure that the government can continue to effectively manage its increased budget deficit while spending on investments in infrastructure, education, and healthcare for economic growth and recovery.”
This also comes after Marcos, in a press conference on Thursday, nominated the members of his economic team.
“Imposing new taxes, deferring personal income tax reductions, and repealing some tax exemptions are some of the proposals of the Department of Finance to the incoming Marcos Administration to raise the much-needed government revenues. However, we leave this matter, and other ways to mobilize resources, to the wisdom of the President-elect’s Economic Team,” Andanar said in a press statement.
Marcos is scheduled to assume office on June 30.
In a press conference on Thursday morning, Marcos announced he had picked Bangko Sentral ng Pilipinas Governor (BSP) Benjamin Diokno to lead his economic team as the next Finance Secretary.
Monetary Board member Felipe Medalla will serve the rest of Diokno's term.
Former University of the Philippines (UP) President Alfredo Pascual was named Trade Secretary.
They will join Philippine Competition Commission (PCC) chairperson Arsenio Balisacan, Marcos’ socioeconomic planning secretary, in the incoming administration’s economic team.
The Philippines needs to raise PHP249 billion every year in incremental revenues for the next 10 years to pay the country’s PHP3.2 trillion in incremental debt incurred during the pandemic, according to data from the Bureau of the Treasury.
To raise this amount, the DOF proposed to “raise revenues, improve tax administration, and cut unnecessary spending with fiscal reforms” in its fiscal consolidation and resource mobilization plan. (PNA)