ASEAN KEY DESTINATIONS
Gov't eyes revenue-to-GDP ratio of 18% by 2022
Philippines: The Duterte administration is targeting to raise the share of government revenue to the gross domestic product (GDP) to 17.7 percent by the 2022, according to the Department of Finance.
"Between now and 2022, with tax reforms and continuing improvement in tax administration, we are looking to improving the ratio of revenue-to-GDP from the current 15 percent to 17.7 percent in 2022," Finance Secretary Carlos Dominguez III told the members of the House committee on appropriations during the national budget deliberations.
In 2018, the government targets to raise as much as P2.8 trillion in revenue or 16.3 percent of the GDP, according to the DOF official.
"This includes revenue measures of P133.8 billion," Dominguez said.
The Duterte administration expects the comprehensive tax reform program to yield P133.8 billion.
The tax revenue share to economic growth will increase from 13.7 percent in 2016 to 17 percent by 2022, according to the Cabinet official.
"This will bring our tax effort to about the regional average," Dominguez said. "Tax effort will be increased to 15.3 percent of GDP in 2018 to be able to finance needed social expenditures," he said.
In the first six months of the year, total revenue grew by 6.8 percent from a year earlier.
"Tax revenues for the first six months also improved by 8.8 percent," Dominguez noted.
"When the numbers for 2017 come in, I am sure they will show even more dramatic improvement due to ongoing administrative reforms. And, hopefully, the beneficial early effects of tax reform," the he said.
"These are truly promising growth figures. Rest assured that our main revenue agencies are committed to maintaining this momentum," he said.
Meanwhile, non-tax revenue fell by 8.9 percent in the first half of the year.
"Revenues from privatization decreased even more dramatically by 43.6 percent due largely to the expected diminishing returns from this program," Dominguez noted.
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