The Department of Finance (DOF) has firmly dismissed recent reports suggesting the imposition of new taxes, emphasizing that the government’s robust fiscal standing negates the need for additional revenue measures at this time.
Finance Secretary Ralph Recto affirmed on Tuesday the government’s prudent financial management, which ensures the fulfillment of public needs without burdening citizens with new levies.
As the government’s chief steward of fiscal discipline, Secretary Recto explained that the DOF prioritizes securing sufficient resources to safeguard the economy, particularly amidst global uncertainties.
“We had strategic measures prepared to ensure fiscal sustainability and establish necessary buffers against rising global economic headwinds stemming from political tensions, persistent high interest rates, and unpredictable trade policies. However, our current strong fiscal performance means these measures are not presently required,” Secretary Recto stated.
A key indicator of this fiscal strength, he highlighted, is the robust double-digit growth in tax collections during the first quarter of the year, underscoring the nation’s financial stability.
For the first quarter of 2025, total tax collections surged by 13.55% to PHP 931.5 billion. Notably, the Bureau of Internal Revenue (BIR) recorded PHP 690.4 billion in collections, a significant 16.67% increase compared to the same period last year. Similarly, the Bureau of Customs (BOC) demonstrated strong performance with a 5.72% growth in collections, reaching PHP 231.4 billion.
This impressive revenue generation is primarily attributed to the sustained success of both revenue agencies in enhancing tax administration, embracing digitalization, and intensifying enforcement efforts.
“Currently, our revenues are more than adequate to cover our expenditure requirements. We are meeting our obligations, funding crucial programs, and fostering economic growth without resorting to new taxes on our fellow citizens,” Secretary Recto emphasized.
He further added, “We are also actively managing our deficit level while maintaining a sustainable debt trajectory, consistent with our Medium-Term Fiscal Framework (MTFF).”
To maintain this positive momentum, the DOF remains committed to the effective implementation of vital measures designed to attract and retain investments, as well as generate increased government revenues. These include the CREATE MORE Act, the Ease of Paying Taxes (EOPT) Act, amendments to the Foreign Investment Act, the Retail Trade Liberalization Act, and the Public Service Act, and the Public-Private Partnership (PPP) Code, among other initiatives.
Simultaneously, the DOF will continue to explore and strengthen non-tax revenue sources to meet the revenue targets outlined in the Budget of Expenditures and Sources of Financing (BESF).
In a related matter, the Cabinet secretary cautioned the public against the spread of disinformation, particularly with the national elections approaching in less than three weeks.
“Disinformation tends to escalate during election periods, especially online. Regarding fiscal policy matters such as taxes, we urge the public to exercise greater discernment, verify information circulating on social media, and rely on official statements from government channels.”
Secretary Recto concluded by reassuring the public of the government’s unwavering commitment to balancing growth and stability without imposing new tax burdens.
