SECTOR: Economy
SONA YEAR: 2022
Implement sound fiscal mgt
PROMISE STATUS - DATE: In progress as of 07/17/2023
- The House of Representatives passed House Bill (HB) 4122, imposing a 12% value-added tax (VAT) on digital transactions in the Philippines, such as the host of online auctions and platforms, subscription-based online services, supplier of goods and online services. Its Senate counterpart, SB 250, filed by Sen. Pia Cayetano on July 11, 2022, is pending at the committee level. Cayetano said in her explanatory note that the proposed law “does not impose new taxes.” It only “strengthens and streamlines” the authority of the Bureau of Internal Revenue in collecting VAT from resident and non-resident digital service providers according to the National Internal Revenue Code.”
- As of April 2023, tax revenues amounted to P1.12 billion which, the Bangko Sentral ng Pilipinas (BSP) says, is “about 87.9% of total revenues.”
- In relation to fiscal governance, Marcos approved Executive Order (EO) No. 29 or the Integrated Financial Management Information System (IFMIS) on June 1, amending EO 55. The IFMIS covers “all financial transactions of the government” and “ensures more timely and efficient management and monitoring of public funds” across all departments, agencies, and instrumentalities of the government, including government-owned and -controlled corporations. Budget Secretary Amenah Pangandaman said in a June 2 press release that the IFMIS “will be able to eradicate corruption, and foster bureaucratic efficiency and sustainability” since it “allows the efficient monitoring of disbursements and appropriation of public funds.”