Is the Government Proposing New Taxes in the Philippines This Year?
Finance chief Ralph Recto, whose appointment has been confirmed by the Commission on Appointments, has the answer to the question of new taxes in the Philippines.
The government has no plans to propose new taxes in the Philippines for 2024. This is according to Finance Secretary Ralph Recto, who said that any new proposals will be made next year at the very least instead.
Instead, he said his department will be focusing on tax measures that are already in Congress. Per a report by ABS-CBN News, the tax measures currently in Congress total to six.
“Only those that are already in the advanced stages in Congress… so we are only pursuing the six measures that are here already in Congress,” Recto told reporters.
Recto’s Appointment Confirmed by CA
Recto gave the same answer regarding the government’s tax plans to the finance committee of Commission on Appointments (CA). The CA has approved his appointment as secretary of the Department of Finance.
His appointment was endorsed by the finance committee’s chairperson, Senator Ramon “Bong” Revilla, Jr.
“Through his great attention to detail and relentless pursuit of the greater good, many of the measures that this institution has produced have been cultivated and refined for the benefit of the nation,” said Revilla.
What Recto Has to Say About the Proposed 2024 Budget
Recto likewise shared his insights to the public regarding the proposed budget for 2024. According to Recto, the proposed budget, which amounts to PHP 5.767 trillion, means that the average daily spending will equate to PHP 15.8 billion.
However, the government’s daily revenue only amounts to PHP 11.7 billion. So what happens to the difference of PHP 4 billion? Recto said it “must be plugged by debt.”
Recto reiterated that 2/3 of this debt is domestic and comes in the form of treasury bills, for example. The rest are taken from foreign sources.
“Ang mahalaga, just to be very clear, is you want the economy growing faster than the rate of growth of your debt,” he said to reporters. “Ibig sabihin magagastos mo nang tama.”
[“What’s important, just to be very clear, is you want the economy growing faster than the rate of growth of your debt, meaning you spend it properly.”]
