- The OECD recommends the Philippines gradually remove major VAT exemptions, phase out income tax holidays, and adopt an emissions trading system (ETS) to boost revenues.
- The country collects only about 45% of potential VAT revenues; closing this gap could add 6.5% of GDP in VAT revenue.
- Replacing VAT exemptions for private education, healthcare, and senior citizens with targeted social transfers could raise revenue by 1.2% of GDP.
- Phasing out corporate income tax holidays and shifting to cost-based incentives could increase revenues by 0.3% of GDP.
- Broadening the personal income tax base, improving tax compliance through digital reforms, and fully implementing an ETS could further strengthen revenue and support fiscal and environmental goals.
Source: businessmirror.com.ph
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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