The implementation of the comprehensive tax reform program (CTRP) generated additional revenues amounting to P202.8 billion in 2022, the Department of Finance (DOF) said over the weekend.
In a statement shared by the DOF, it said the total collection was 26.3 percent or P42.3 billion higher than the 2021 full year incremental revenue of P160.5 billion on the back of full economic recovery due to the lifting of stringent quarantine measures.
“The major gains in 2022 were seen in the imported petroleum excise tax, sweetened beverage excise tax, documentary stamp tax, and sin taxes on tobacco and alcohol. These amounted to P272.3 billion in total,” Finance Secretary Benjamin Diokno said.
The total collections from the Tax Reform for Acceleration and Inclusion Law amounted to P216.5 billion in 2022, 27 percent higher than the 2021 collection of P171 billion.
Collections from Package 1B or the Tax Amnesty Law declined by 69.6 percent from P4.6 billion in 2021 to P1.4 billion in 2022.
Collections from Package 2+ or the Sin Tax Laws amounted to P65.3 billion in 2022, 23 percent higher than the 2021 collection of P52.9 billion.
Revenue losses from the Corporate Recovery and Tax Incentives for Enterprises Law reached P80.4 billion in 2022, an increase of 18 percent from the actual impact in 2021 of P68 billion.
Over the five-year period of 2018 to 2022, the revenue impact of the tax reform measures has totaled to P709.9 billion.
The DOF report also showed that the actual personal income tax collection in 2022 reached P623.7 billion, 28.6 percent up from the year ago level of P485.2 billion, as the economy fully reopened with the lifting of quarantine restrictions which further increased demand for labor.
Corporate income tax collections likewise improved in 2022 posting a 5.2 percent increase to P495.5 billion from P471 billion collection in 2021.
This growth in collection reflects the full reopening of the economy, the DOF said.
Meanwhile, the proposed tax revenue measures under the Medium-Term Fiscal Framework such as Package 4 or the Passive lncome and Financial lntermediary Taxation Act, value added tax on digital service providers and excise taxes on single-use plastics and pre-mixed alcohol are currently being deliberated and discussed at the House of Representatives and Senate, and expected to be implemented starting 2024, the DOF said.
These measures are expected to generate P145.6 billion over a five-year period.
The Development Budget Coordination Committee also earlier announced additional tax measures that could complement revenues and finance the administration’s development agenda.
These additional measures include the imposition of higher excise taxes on sweetened beverages, rationalization of the Motor Vehicle Road User’s Tax and reforms to the mining fiscal regime.
The total projected revenue from the additional measures is estimated at P501.253 billion over a four-year period of implementation beginning 2025.
