Palace: Marcos admin to decide on proposal to impose new taxes

MANILA – According to Malacañang, the decision on the proposal of the Department of Finance (DOF) to impose new and higher tax measures, defer personal income tax reductions, and repeal some tax exemptions in order to raise the country’s revenues and settle debts will be up to the incoming economic team of President-elect Ferdinand “Bongbong” Marcos Jr.

Acting presidential spokesperson and Communications Secretary Martin Andanar made this statement following the proposal of DOF on fiscal consolidation and resource mobilization plan as unveiled by Finance Secretary Carlos Dominguez III.

The proposal is intended to “ensure that the government can continue to effectively manage its increased budget deficit while spending on investments in infrastructure, education, and healthcare for economic growth and recovery.”

This, after Marcos nominated the members of his economic team in a press conference on Thursday.

“Imposing new taxes, deferring personal income tax reductions, and repealing some tax exemptions are some of the proposals of the Department of Finance to the incoming Marcos Administration to raise the much-needed government revenues. However, we leave this matter, and other ways to mobilize resources, to the wisdom of the President-elect’s Economic Team,” Andanar said in a press statement.

Marcos is set to assume office on June 30.

Marcos announced in a press conference on Thursday morning that he had picked Bangko Sentral ng Pilipinas Governor (BSP) Benjamin Diokno to lead his economic team as the next Finance Secretary.

Monetary Board member Felipe Medalla will serve the rest of Diokno’s term.

Alfredo Pascual, the former President of the University of the Philippines (UP), has been appointed Trade Secretary.

They will serve in the incoming administration’s economic team alongside Philippine Competition Commission (PCC) chairperson Arsenio Balisacan, Marcos’ socioeconomic planning secretary.

Based on the data from the Bureau of the Treasury, the Philippines needs to raise PHP249 billion every year in incremental revenues for the next 10 years to pay the country’s PHP3.2 trillion in incremental debt incurred during the pandemic.

The DOF proposed to “raise revenues, improve tax administration, and cut unnecessary spending with fiscal reforms” in its fiscal consolidation and resource mobilization plan in order to raise this amount.