FINANCE Secretary Ralph Recto declared that a passage of the refined Department of Finance (DOF) priority tax measures will help increase the share of revenues to almost 17 percent of the country's gross domestic product (GDP) by 2028.

“In my first week as Secretary of Finance, we have worked to review all proposals and have reconsidered some key provisions. This is in consideration of the economic situation, where some proposals might have unintended consequences in terms of inflation or in terms of possibly hindering growth in some sectors,” Recto said.

Recto outlined that among their priority measures include the Value-added Tax (VAT) on Digital Service Providers (DSP); the Imposition of Excise Tax on Single-use Plastics (SUPs); Package 4 of the Comprehensive Tax Reform Program (CTRP); the Rationalization of the Mining Fiscal Regime; and the Reform on the Motor Vehicle Users’ Charge (MVUC).

He explained that the VAT on DSP is aimed to level the playing field for the local and foreign DSPs.

The DOF said that the services that were provided by the latter in the country are subject to VAT.

Recto said that the reform is expected to bring in a total of PHP83.8 billion in revenues from 2024 to 2028.