The Department of Finance (DOF) said the economic team would revise upward the government’s revenue target in light of the better-than-expected collections in the first five months of the year.

“We're planning to revise our revenue collection targets further upward to take into consideration the implementation of tax measures that we are prioritizing,” said Finance Secretary Benjamin E. Diokno at the Kapihan sa Manila Bay forum on Wednesday, June 28.

“We have actually exceeded our collection, so we will revise,” he noted of the collection performance in the January-May period this year.

For 2023, the Development Budget Coordination Committee (DBCC), an inter-agency body tasked to set the government’s macroeconomic assumptions, expects revenues to hit P3.729 trillion.

Earlier, Diokno said the Marcos administration is poised to exceed its revenue target for this year due to robust collections of the government’s two main tax agencies and proceeds from the privatization program.

Based on the DOF data, total tax revenues amounted to P1.592 trillion from January to May, higher by 11 percent compared with P1.437 trillion in the same period last year.

Diokno explained that the double-digit growth in revenues was due to “improved tax administration” in the absence of new tax measures.

Aside from this year, Diokno said the DBCC will also review the government’s revenue targets under the Medium-Term Fiscal Framework, the country’s blueprint towards fiscal sustainability.

“Our robust fiscal performance suggests that we are on track to achieving our targets under the Medium-Term Fiscal Framework,” he said.

Diokno said the government expects to implement seven priority tax measures of the Marcos administration before 2025.

These measures include the Real Property Valuation and Assessment Reform, the Passive Income and Financial Intermediaries Taxation Act, and the proposed value-added tax (VAT) on digital services.

“As recently discussed, we are pushing for the passage and implementation of a new tax on junk foods and raising the levy and expanding the tax base on sweetened beverages,” Diokno said.

In addition, Diokno said the DOF is also supporting the passage of the excise tax on single-use plastics to curb its consumption by almost 25 percent while generating around P6.5 billion in revenues in 2024.

The DOF will also push the proposed reform to the Motor Vehicle User’s Charge that aims to generate revenues to fund investments in road quality and road safety.

“Lastly, we are pushing for the rationalization of the mining fiscal regime. Now, we are pushing for mining because that is another revenue source for us. And a necessary condition for that to happen is the passage of this measure,” Diokno said.

“The potential market is waiting for the passage of this measure, which seeks to simplify the current fiscal regime of the extractives sector while ensuring the government’s fair share of mining revenues. It is eagerly awaited by the mining industry,” he added.