The national government’s revenue performance is expected to exceed the P3.73 trillion target for this year, the inter-agency Development Budget Coordination Committee (DBCC) said.
In a joint statement issued following a special meeting on Friday, the DBCC said the emerging total revenue collection for this year is estimated to reach P3.84 trillion to P3.90 trillion.
“The National Government’s revenue performance is expected to exceed the target set during the 184th DBCC meeting in April 2023,” the DBCC said.
Members of the DBCC include the Department of Budget and Management (DBM), Department of Finance (DOF), National Economic and Development Authority, and the Bangko Sentral ng Pilipinas.
According to the DBCC, total revenues for the first nine months of the year amounted to P2.84 trillion, up by 6.8 percent year-on-year.
“Both tax and non-tax revenues registered positive growth at 6.4 and 10.5 percent, respectively,” the DBCC said.
The actual revenue collections during the period also exceeded the program by 3.0 percent mainly due to higher collections from the Bureau of Customs (BOC) and non-tax revenues of P152.57 billion.
The DBCC said the emerging revenue effort for 2023 is estimated to be at least 15.7 percent, surpassing both the Medium-Term Fiscal Framework target and 184th DBCC-approved level at 15.3 percent and 15.2 percent, respectively.
It added that the Bureau of Internal Revenue and the BOC are implementing several reforms to strengthen tax administration and enhance revenue collection, which include digitalization programs intended to eliminate corruption, increase transparency, and improve the ease of paying taxes.
“The DBCC will closely work with Congress for the passage of the previous administration’s remaining tax reforms on passive income and financial intermediaries taxation and real property valuation and assessment, as well as new tax measures,” the DBCC said.
These include the excise tax on single-use plastics, rationalization of the mining fiscal regime, motor-vehicle road users’ tax, excise tax on sweetened beverages and junk foods, tax on pre-mixed alcohol, value-added tax on digital service providers, carbon taxation, capital market development bill, and the military and uniformed personnel pension reform bill.
The DBCC meanwhile said government spending is expected to improve in the fourth quarter of the year.
“This will be mainly driven by accelerated implementation of programs on infrastructure, transport, labor and employment, social protection, and education, among others,” it said. PNA