Citing the growth of total taxes of taxes in the first quarter of 2025, the Secretary of Finance Ralph Recto withdrew the proposal of the Finance Department to increase the tax on capital gains, donor tax and real estate tax.
Withdrawal of the growth invoice
In a statement, he said that the government does not plan to introduce new taxes; Instead, the department will focus on improving the sources of income that are not taxes.
“Given our current strong fiscal performance, these are not necessary at this time … The Government is adequately administering their finances, ensuring that public needs are satisfied without charging citizens with new taxes.”
Ralph Right, Secretary, Finance Department
In addition, in a letter to the Albay representative, Joey Salceda, president of the Media and Media Committee of the House of Representatives, also withdrew the amendments proposed to the Law for the Promotion of Efficiency of Capital Markets, citing a better income performance than expected in the first quarter of the year.
As mandatory, the jurisdiction of the committee covers the fiscal, monetary and financial affairs of the national government, including rates, taxes, income, loans, credit and borrowing in bonds.
P1 tax collection growth
According to straight, total tax collections in the first quarter of 2025 increased by 13.55%, reaching ₱ 931.5 billion.
Specifically, the Internal Tax Office (BIR) collected ₱ 690.4 billion, marking an increase of 16.67% compared to the previous year, while the Customs Office (BOC) recorded an increase of 5.72% in the collections, reaching ₱ 231.4 billion for the same period.
“At this point, current income is more than enough to support our expenses requirements. We are fulfilling our obligations, financing key programs and the growth of the economy without having to impose new taxes on our Kababayan … we are also decisively managing our deficit level, while maintaining a sustainable debt trajectory aligned with our medium fiscal framework.”
Ralph Right, Secretary, Finance Department
The DOF expects to collect ₱ 4.64 billion in total income by 2025, with approximately ₱ 3.23 billion BIR and ₱ 1.1 billion Boc.
Thinking about the future
Recto emphasized the commitment of the department to implement key reforms that will maintain and attract investments while improving government income. These include the law create more, the Law on the Payment of Taxes, amendments to the Foreign Investment Law, the Law of Liberalization of Retail Trade, the Public Service Law and the Public-Vivada Association Code, among other important reforms.
In addition, the Secretary of Finance stressed that it will persist in identifying and improving income flows that are not taxes to achieve the income objectives described in the budget of expenses and financing sources.
What is the growth bill?
He appreciates the optimization of government income through the Project of Harmonization of Taxes on Heritage, is a tax reform measure proposed by the Administration of Marcos, destined as a successor to the Law on Passive Revenue and Financial Intermediaries of the previous Administration.
Although it was considered that the previous act resulted in ₱ 125.9 billion in revenue losses from 2025 to 2029, the growth bill aims to generate ₱ 300 billion in additional income between 2025 and 2030, which helps reduce the government budget deficit and minimize loans.
Key characteristics of the growth invoice
- Increased tax rates on capital gains, donor taxes and real estate taxes from 6% to 10%.
- Increased tax rate on the currency deposit in accounts for residents from 15% to 20%, so that they coincide with the weight deposits rate.
- Eliminate exemptions on certain passive income flows, including profits of savings deposits, time deposits, deposits and certificates of long -term negotiable deposit.
- Maintain existing rates on gross receipts and tax withholding, but eliminating tax exemptions to expand the tax base.
This article is published in Bitpins: Remo
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