CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. IMF Calls On Philippines To Reduce Tax Exemptions

IMF Calls On Philippines To Reduce Tax Exemptions

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

13 August 2014


The International Monetary Fund (IMF) has advised the Philippines to broaden the tax base by reducing exemptions and allowances and reforming the mining tax regime.

The Philippine government needs to increase public spending to fund reconstruction projects in the wake of the Yolanda super-typhoon, upgrade infrastructure, and support improved social outcomes. The IMF said that a "sizeable tax effort" would be needed to meet these spending demands.

Mobilizing the needed revenue should rely primarily on broadening the tax base by reducing corporate income tax holidays, narrowing the value-added tax (VAT) gap, and adopting a new mining strategy, supported by further improvements in tax administration, the IMF said.

If adopted, the identified tax policy measures could yield 2-3 percentage points of gross domestic product (GDP), sufficient to finance the envisaged doubling in infrastructure spending, the IMF said.

The IMF's comments, which were included in its 2014 Article IV consultation report with the Philippines, follow a World Bank report, which also called on the southeast Asian country to mobilize additional tax revenues to enhance growth and raise household income in the coming years.

TAGS: tax | mining | gross domestic product (GDP) | International Monetary Fund (IMF) | Philippines | construction

To see today's news, click here.

 
















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »