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Philippines urged to roll out tax reforms

The Philippine government should continue to roll out tax reforms instead of imposing higher taxes, said the University of Asia and the Pacific Senior Economist Cid L. Terosa. This is in response to Finance Secretary Carlos G. Dominguez III's hint at proposing new and higher taxes to pay for debt incurred during the coronavirus pandemic. The Department of Finance (DoF) is preparing a fiscal consolidation plan to manage debt as it transitions to the next administration, which will take over on June 30. Terosa said that in general, a fiscal consolidation plan should involve raising more taxes and cutting government spending. Both, however, can cause economic recovery to decelerate. He added that the imposition of taxes that are less distortionary, such as a wealth tax, has to be diligently studied.

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