No new taxes this year: Finance chief Recto

Jekki Pascual, ABS-CBN News

MANILA -- Finance Secretary Ralph Recto said on Wednesday there will be no new taxes this year. In his first press conference as Finance chief, Recto said imposing new taxes will contribute to inflation which remains a major concern for Filipinos. He said they are still reviewing and refining the tax proposals of his predecessor Benjamin Diokno, but the planned new taxes on sweetened beverages and junk food have already been scrapped.“As to imposing new taxes, there are no plans of imposing additional new taxes. I think our first job is to collect what is on the table,” said Recto.<figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=2939890" width="100%"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div>He also said the additional Motor Vehicle User’s Charge (MVUC) is no longer being discussed. “The <a href="https://news.abs-cbn.com/business/06/27/23/motorcycle-exemption-from-mvuc-eyed-in-tax-reform">MVUC</a> increase. We’re tempering that proposal. Because I think yung motorista, marami ng masyadong buwis na binabayaran. There are excise taxes and VAT and oil. There are excise taxes, duties and VAT on vehicles.”But despite having no new taxes, Recto said the goal is to generate P4.3 trillion in revenues this year while adding that there is also a need to borrow some P2.4 trillion to fuel economic growth.He urged the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) to improve revenue collection, be more transparent, get rid of corruption, and pursue digitalization efforts.BIR Commissioner Romeo Lumagui Jr said they aim to collect P3 trillion in taxes this year.“We believe that if we make it easier for taxpayers to comply and we educate them properly, compliance for taxpayers will go up.”BOC Commissioner Bienvenido Rubio, meanwhile, said the agency aims to collect nearly P1 trillion this year. “We try to engage and collaborate with other law enforcement agencies in order for us to protect our borders and prevent the entry of illicit goods, contrabands, drugs.”<div>UNIFORMED PENSION REFORM</div>Recto also said the proposed military uniformed personnel (MUP) pension reform may still work it if would only cover new entrants.In a joint briefing with the Bureau of Internal Revenue and the Bureau of Customs, Recto said the government must respect the current setup of the military pension system. “What we can do for the reform is all new entrants, halimbawa January 1, 2025, will have a different pension system… they contribute now to GSIS,” said Recto during his first press conference as DOF secretary.Recto also added that to fund the military pension, the Armed Forces of the Philippines could use some of its assets to help contribute to the pension.The MUP reform system was supported by his predecessor, Benjamin Diokno, who said that the current level of military pension spending already exceeds the money for soldiers who are in active service. <ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/news/09/26/23/house-approves-proposed-mup-pension-reform-system-on-third-and-final-reading">House approves proposed MUP pension reform system on third and final reading</a></li></ul>Diokno has said that in 2021, pension spending reached P160 billion, higher than the maintenance and operation expenses of the military which is at P116 billion. Diokno asserted that if the current system is fiscally unsustainable.<div>CHARTER CHANGE</div>Meanwhile, Recto said he supports moves to amend the economic provisions of the Constitution to further open up the economy.<ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/video/business/01/22/24/govt-urged-to-rethink-opening-commanding-industries">Investment banker urges govt to rethink opening &#x27;commanding heights&#x27; industries</a></li></ul>The new Finance chief said he also believes President Ferdinand Marcos Jr also supports this initiative.“I think the President, to attract more investments, would be amenable to amend the Charter to liberalize further the economy. What is being discussed, halimbawa, opening up education for investments. I think we can agree with that,&quot; he added.<ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/video/business/01/16/24/opening-up-ph-to-more-foreign-investments-not-a-magic-bullet-economic-think-tank">Opening up PH to more foreign investments not a &#x27;magic bullet&#x27;: economic think tank</a></li></ul>But even without the amendments, Recto said they are also pushing for other measures to help attract more investments, including domestic investors and foreign businesses already here in the country.“Act faster on improving projects and getting more investments. At the same time, you have many domestic investors willing to invest, you have foreign enterprises located already in the Philippines willing to invest more,” Recto said.

In his first press conference as Finance chief, Recto said imposing new taxes would contribute to inflation which remains a major concern for Filipinos. 

No new taxes this year: Finance chief Recto | ABS-CBN

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No new taxes this year: Finance chief Recto

No new taxes this year: Finance chief Recto

Jekki Pascual,

ABS-CBN News

Published Jan 24, 2024 04:14 PM PHT

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Updated Jan 24, 2024 04:24 PM PHT

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Finance Secretary

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