MANILA, Philippines – A team from the International Monetary Fund (IMF) will evaluate the government’s revenue policy starting this week and make recommendations on how it can be improved.
The Department of Finance will discuss tax issues with the multilateral agency from April 25 to May 6, the agency’s director Elsa Agustin said last Wednesday.
“We invited them last year. They do these things upon invitation. They will be here to make inputs on our tax policy,” Agustin said on the sidelines of a tax forum.
Issues that will be tackled include both tax policy and administration reforms aimed at increasing revenue collections.
Agustin said the IMF had similar missions in the Philippines including one in 2014 when fiscal transparency evaluation was held.
A country report containing the recommendations is usually issued months after.
Aside from invitational visits, the multilateral lender conducts every year its Article IV consultations with the Philippines to examine the health of the local economy.
The last consultation was held in October last year.
Since 2010, the Aquino administration has put improving tax administration measures to raise revenues.
It pursued weekly filing of tax evasion and smuggling cases under two programs of the Bureaus of Internal Revenue and Customs. The DOF oversees both agencies.
Policy-wise, it saw the passage of RA 10351, which increased excise taxes on tobacco and alcohol products in 2012.
As of January this year, revenues rose nine percent year-on-year to P182.23 billion. This helped contain the budget deficit to just P3.47 billion, down 46 percent.