August 26th, 2022
As of today, the committee has already approved measures that would amount to at least P75.2 billion in new revenues over the next year.
Package 4 of the Comprehensive Tax Reform Program, the core of which is PIFITA, will generate P25.7bn in new revenues. VAT on foreign digital service providers will also yield some P11.7 billion in new revenues on the first year. The new fiscal regime for mining is the grandest and most desirable of these reforms, generating some P37.5 billion in new revenues on its first year of implementation.
All in all, if enacted, they will secure at least P74.9 billion in new revenues for PBBM’s administration. This will assure him of the fiscal space needed to meet the assumptions of the Medium Term Fiscal Framework, which is an annual tax effort growth of 0.3 percentage points. These three measures, in fact, exceed that target slightly.
Moving forward, now that we have completed all priority tax measures of the PBBM administration, the committee will begin hearing its own original measures. As in our past term, the committee initiates its own revenue-raising measures that the administration supports. This was the case for the POGO fiscal regime, which originated as a proposal in my committee.
I assure President Marcos that his government will have the fiscal space it needs from Congress. My committee will continue to work with the tax collection agencies to improve tax administration, enhance enforcement, and make the experience of paying taxes more convenient.
I thank the House leadership and the committee membership for their continued support.