The Development Budget Coordination Committee (DBCC) will pursue the legislative approval of revenue-generating measures in addition to the reforms under the Medium-Term Fiscal Framework (MTFF), Finance Secretary Benjamin Diokno said on Monday.
“Including 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,” he said at the 184th DBCC Joint Statement.
The revenue impact of these measures is expected to kick in starting 2025.
Diokno said given the additional tax reforms, “the DBCC projects revenues to increase from P3.7 trillion in 2023 to P6.6 trillion in 2028, or an average annual increase of P512.7 billion.”
“Specifically, tax revenues are expected to increase from P3.5 trillion in 2023 to P6.4 trillion in 2028, equivalent to an annual average increase of P536.3 billion,” he added.
As a percentage of gross domestic product (GDP), tax effort will increase from 14.4 percent in 2023 to 16.8 percent in 2028 Diokno said.
The implementation of the Passive Income and Financial Intermediaries Taxation Act (PIFITA), imposition of value-added tax (VAT) on digital service providers, imposition excise tax on single-use plastics (SUP), and imposition of excise tax on pre-mixed alcohol are expected to begin in 2024.
“These are the four measures that were already included in the Medium-Term Fiscal Framework,” Diokno said.