DoF: New tax measures will boost economy

The economic managers on Tuesday urged President Ferdinand Marcos Jr. to certify four tax measures as urgent to boost the country's economy amid the global economic headwinds.

In a briefing, Finance Secretary Benjamin Diokno explained that certifying the new taxes as urgent would help attain the 5.1 percent deficit-to-gross domestic product target for 2024.

In particular, Diokno said Marcos is urged to act on the proposed Package 4 of the Comprehensive Tax Reform Program and the three bills imposing value-added tax (VAT) on digital service providers, and excise taxes on single-use plastic bags, sweetened beverages, and junk food.

"So, we ask the President to act on the following request: some tax measures – VAT on digital services; excise tax on single-use plastic – this is for climate change proposal. The VAT on digital services is rooted in fairness. When you purchase from a brick-and-mortar or regular store, you pay VAT. So, why not pay VAT for digital services, too?" Diokno said.

"In general, the reform is okay. It's like a brief on the state of the economy. So, I am not expecting the President to have a specific reaction to that," he said when asked about the President's reaction to the economic team's proposal.

The bills are now in the final phases within the Senate Ways and Means Committee. Diokno mentioned that upon their endorsement, these proposals are projected to produce earnings totaling P32 Billion, which accounts for 0.1 percent of the nation's GDP.