Government nets P203 million from tax reforms Lawrence Agcaoili - The Philippine Star

STAR / File MANILA, Philippines — Additional revenues gained from the implementation of the Comprehensive Tax Reform Program (CTRP) and previous reforms jumped by 26.3 percent to P202.8 billion last year from the previous year’s P160.5 billion, according to the Department of Finance (DOF). Finance Secretary Benjamin Diokno said the total collection last year was P42.3 billion higher than the 2021 full year incremental revenue on the back of full economic recovery due to lifting of stringent COVID-19 quarantine measures. The tax reform packages include Republic Act 10963 or the Tax Reform for Inclusion and Acceleration Act (TRAIN), RA 11534 or the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE), as well as the Sin Tax laws. Diokno said total collections from the TRAIN Law increased by 27 percent to P216.5 billion last year from P171 billion in 2021, while collections from Package 2+ or the Sin Tax laws grew by 23 percent to P65.3 billion from P52.9 billion. Under the TRAIN Law, those with annual taxable income below P250,000 are now exempt from paying personal income tax, while the rest of taxpayers, except the richest, will be charged lower tax rates ranging from 15 to 30 percent by 2023. To maintain progressivity, the top individual taxpayers whose annual taxable income exceeds P8 million face a higher tax rate of 35 percent from the previous 32 percent. Package 2+ of the CTRP increased the excise taxes on tobacco and alcohol products, and imposed excise taxes on e-cigarette products to provide a sustainable funding source for the full implementation of the universal health care program and to reduce the incidence of risks associated with the consumption of sin products. On the other hand, collections from Package 1B or the Tax Amnesty Law plunged by 69.6 percent to P1.4 billion from P4.6 billion, while revenue losses from the CREATE Law went up by 18 percent to P80.4 billion from P68 billion. The Tax Amnesty Act complements the TRAIN law and allows errant taxpayers affordably settle their outstanding tax liabilities, allowing for a “fresh start,” while also providing the government with additional revenues for its priority infrastructure and social programs. Meanwhile, the CREATE Law reduced the corporate income tax in the country to 20 percent from 30 percent, with large corporations enjoying an immediate reduction in the corporate income tax rate to 25 percent from 30 percent. “The major gains in 2022 were seen in the imported petroleum excise tax, sweetened beverage excise tax, documentary stamp tax, and sin taxes on tobacco and alcohol,” Diokno said. Data released by the DOF showed collections from these reforms amounted to P272.3 billion last year as imported petroleum excise tax increased by 10.7 percent to P132.6 billion from P119.8 billion in 2021 due to higher volume of oil imports, and the implementation of the fuel marking program. Likewise, documentary stamp tax jumped by 58.8 percent to P58.8 billion, followed by alcohol excise tax that surged by 23 percent to P31.8 billion, excise collection from sweetened beverages went up by 12.7 percent to P44.3 billion, and the 2.5 percent rise in tobacco excise tax to P15.7 billion. Over the past five years, incremental revenues from the implementation of the TRAIN Law packages and the CREATE Act yielded P709.9 billion after steadily increasing from P68.4 billion in 2018, P133.5 billion in 2019, P144.6 billion in 2020, P160.5 billion in 2021 and P202.8 billion in 2022

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