THE national government’s earnings last year from the various tax reforms of the previous administration, like the Tax Reform for Acceleration and Inclusion [TRAIN] law, expanded by more than a quarter to over P200 billion on the back of the opening of the economy.
Internal Revenue data released by the Department of Finance (DOF) showed that cumulative taxes collected from the various tax reform packages last year reached P202.8 billion, 26.35 percent over the P160.5 billion recorded in 2021.
“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 lifting of stringent quarantine measures,” the DOF said in a recent statement.
Last year’s collection brought the total additional revenues generated by the government from the various tax reforms, which started with the TRAIN law in 2018, to P709.9 billion.
The DOF data showed that revenues from almost all tax packages in effect posted increased collections last year.
“Total collections from the TRAIN Law amounted to P216.5 billion in 2022, 27 percent or P45.5 billion higher than the 2021 collection of P171.0 billion,” the finance department said.
“Collections from Package 2+ or the Sin tax laws amounted to P65.3 billion in 2022, 23 percent or P12.4 billion higher than the 2021 collection of P52.9 billion,” it added.
Meanwhile, collections from Package 1B, or the Tax Amnesty law, declined by almost 70 percent to P1.4 billion from P3.2 billion in 2021, while revenue losses from the CREATE [Corporate Recovery and Tax Incentives for Enterprises] law grew by 18 percent year-on-year to P80.4 billion.
“The major gains in 2022 were seen in the imported petroleum excise tax, sweetened beverage excise tax, documentary stamp tax, tobacco and alcohol sin taxes,” the DOF said.
The national government raked in P132.6 billion in imported petroleum excise tax, 10.7 percent more than the P119.8 billion it collected in 2021.
“The higher excise collection was due to higher volume of oil imports and the implementation of the fuel marking program of the national government,” the DOF said.
Excise collections from sweetened beverages rose 12.7 percent year-on-year to P44.3 billion, while tobacco excise tax earnings reached P15.7 billion, 2.6 percent more than the P15.3 billion the government collected in 2021.
Furthermore, alcohol excise tax improved by 23.0 percent with P31.8 billion collection, while documentary stamp tax collection rose by P12.2 billion year-on-year to P58.8 billion, according to the DOF.