President Ferdinand Marcos Jr. yesterday outlined his administration’s fiscal program for the next six years which includes adjustments and simplification of the tax system and the optimization of the government’s budget.
In his first state of nation address (SONA), Marcos also vowed to strengthen the agriculture and energy sectors and turn the Philippines into an investment destination.
The President opened his one-hour and 14-minute speech on his plans for the economy, agriculture and tourism sector, and discussed the infrastructure development and energy sectors in the second half.
“In terms of the economy, we will implement a sound fiscal management. Tax administration reforms will be in place to increase revenue collection. Expenditure priorities will be realigned, and spending efficiency will be improved to immediately address the economic scarring arising from the effects of COVID-19 (new coronavirus disease 2019), and also to prepare for future shocks. Productivity-enhancing investments will be promoted,” Marcos said .
He said the country should capitalize on existing economic laws such as the Corporate Recovery and Tax Incentives for Enterprises , the Public Service Act and the Foreign Investments Act; open economic zones to more strategic industries that engaged in high-tech manufacturing, health and medical care, and all emerging technologies; facilitate economic growth outside of Metro Manila to strengthen the country’s investment climate.
He said the tax systems will also be adjusted to catch up with the rapid developments of the digital economy, including the imposition of value-added tax on digital service providers, and eventually raise around P11.7 billion in revenue in 2023 alone.
Marcos said tax compliance procedures will be simplified to promote ease of paying taxes while measures would be pursued to determine possible undervaluation or trade misinvoicing of imported goods and processes at the Bureau of Customs would be streamlined to make it more efficient.
