taxrevenue

READ: Ralph Recto is pushing for a steep increase in government revenues, saying collections must grow by 10.2 percent annually from 2025 to 2028 to keep the country’s finances stable.

If achieved, total revenues could reach nearly ₱6 trillion by the end of the current administration and exceed ₱7 trillion by 2030.

The plan relies on improving tax collection efficiency through digitalization at the Bureau of Internal Revenue and Bureau of Customs, along with non-tax revenues and programs like the General Tax Amnesty and the extension of the Estate Tax Amnesty.

The scale of the challenge is massive. Last year, the government collected ₱4.42 trillion to support a ₱5.925 trillion budget that funded education for over 24 million students, healthcare for millions, and hundreds of billions in local government support.

This year, the government is expected to collect around ₱13.65 billion daily while dealing with a ₱4.51 billion daily deficit to sustain spending.

Recto also warned against proposals to lower VAT, saying it would result in major revenue losses. He noted that the projected ₱1.39 trillion VAT collection for 2025 would only cover about nine months of salaries, pensions, and benefits for government workers.

With spending needs continuing to grow, the government is making it clear that cutting taxes could come at the cost of essential public services.

#Philippines #DOF #RalphRecto #TaxRevenue

The federal government collected Rs. 371 billion in petroleum levies during the first quarter (July–September), marking a 42% increase from the Rs. 261 billion collected in the same period last year. An additional Rs. 110 billion was recorded in just this quarter as part of fiscal adjustments aligned with IMF stabilization requirements.

Pakistan also reported a budget surplus of 1.6% of GDP, while the primary balance stood at 2.7%, reflecting stronger revenue controls and expenditure discipline.

Other notable revenue components for the quarter included:
• Carbon Levy: Rs. 10 billion
• EV Adoption Levy: Rs. 3 billion
• Provincial Transfers Under NFC: Rs. 1,775 billion

Provincial allocation breakdown:
• Punjab: Rs. 882 billion
• Sindh: Rs. 441 billion
• Khyber Pakhtunkhwa: Rs. 287 billion
• Balochistan: Rs. 164 billion

These developments highlight Pakistan’s continued efforts to meet fiscal reform targets while navigating rising revenue pressures tied to global energy pricing and domestic economic adjustments.

#BudgetSurplus #FiscalPolicy #TaxRevenue #NFC #PublicFinance

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