Gov’t targets P26-B revenues from planned tax amnesty program

The Palace façade featured on the briefing room signage (Photo By Office of the Executive Secretary – http://www.malacanang.gov.ph/, Public Domain)

MANILA— The government targets PHP26-billion in revenue collections from the planned tax amnesty program.

Finance Undersecretary Karl Chua, in a briefing at Malacanang Monday, said they have no idea how many erring taxpayers will avail of the tax amnesty, although he remains hopeful about the benefit to state revenues.

He explained that their estimates were based on the tax amnesty in 2008.

That year the government collected PHP13 billion, or about 0.07 percent of gross domestic product (GDP).

“So we used the same estimate and double that is around PHP26 billion.  Double because our GDP has practically doubled,” he said.

The Finance department official said that gains from the targeted amnesty program “practically depends on who will avail.

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The tax amnesty program is being eyed as the government aims for higher revenues to finance its infrastructure and social protection programs.

The Duterte administration has set an infrastructure program amounting to at least PHP8 trillion until 2022.

It eyes to increase infrastructure spending to about seven percent of GDP from the current five percent in a bid to ensure that necessary infrastructure are constructed.

Economic officials said this will assure a more sustainable and long-term growth for the domestic economy.