Government generates P576 billion from various tax reforms

MANILA, Philippines — The government has so far generated P575.8 billion in taxes from the tax reforms it undertook, raising additional funds to finance infrastructure buildup and social services.

Finance Undersecretary Valery Brion yesterday said the government collected P575.8 billion in incremental revenues from 2018 to 2021 through the implementation of Tax Reform for Acceleration and Inclusion (TRAIN) Law, sin tax laws and tax amnesty program.

During the four-year period, Brion said the TRAIN Law brought in P476.1 billion, the sin tax laws contributed P85 billion, while the tax amnesty program earned P14.6 billion.

Brion said revenues from the tax measures were used to fund infrastructure projects under the Build Build Build program.

She said part of the proceeds were also channeled to finance the government’s universal health care program.

In 2021 alone, Brion said the government raised P228.6 billion worth of revenues from the three tax reforms. The TRAIN Law raked in P171.1 billion, surpassing by eight percent the objective of P157.9 billion, while the sin tax laws earned P52.9 billion, exceeding by 23 percent the target of P43.1 billion.

Further, Brion said the tax amnesty program injected P4.6 billion to state coffers last year.

The TRAIN Law, approved by President Duterte in 2017, exempted workers with a gross annual income of P250,000 and below from paying personal income taxes.

In exchange, the measure slapped excise taxes on fuel, sugar-sweetened beverages, vehicles, among others, revenues from which were allocated for the completion of big-ticket projects.

On the other hand, Republic Act 11346 enforced an excise tax on cigarettes of P45 per pack in 2019, increasing by P5 every year until it reaches P60 in 2023. Afterward, the rate will go up by five percent annually starting 2024 through revenue regulations issued by the finance chief.

Also in 2019, the President signed Republic Act 11213, allowing Filipinos with tax liabilities from 2017 and before to apply for tax amnesty. Likewise, the law provided taxpayers with a one-time chance to settle their estate taxes for the properties of deceased people who died on or prior to Dec. 31, 2017.