Philippines Finance Secretary Denies Introduction Of New Taxes

by Mary Swire, Tax-News.com, Hong Kong

18 November 2008

The Philippines Department of Finance is not proposing to legislate for new taxes, Finance Secretary Gary B. Teves has announced, contradicting press reports.

"We have always been consistent that what we are proposing to Congress are revenue enhancement measures, particularly the rationalization of fiscal incentives and the restructuring of excise taxes for cigarette and alcohol products, to help improve revenue collection, which is urgently needed to increase spending for infrastructure and social services amid these challenging times", Secretary Teves pointed out, going on to add:

"We have been very clear that these are not new taxes since these tax measures are already in place. What we want to do is to make their administration more efficient, effective, and equitable."

He also clarified that the proposal to rationalize fiscal incentives seeks to do away with redundant tax incentives and improve on infrastructure for investors.

"We have discussed this with both local and foreign business groups and they support our proposal to gradually reduce redundant tax incentives as we increase our investment to GDP ratio", Teves continued.

Lastly, Teves added that the government is hopeful that the Filipino people will continue to stand united for the country to ride out the global financial storm and even emerge stronger, as the economic and fiscal reforms implemented in recent years have made the economy more diversified and resilient.

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