The Department of Finance (DOF) reported that the government's recent tax reform programs yielded significantly higher revenues last year, following the easing of strict quarantine restrictions.

Based on the data released by the DOF, the government’s total net gains from the Comprehensive Tax Reform Program (CTRP) of the previous administration amounted to P202.8 billion last year.

The total tax haul from these CTRP packages jumped 26 percent from P160.5 billion incremental revenues raised in 2021.

In a statement, Finance Secretary Benjamin E. Diokno said the increased incremental revenues were “on the back of full economic recovery due to lifting of stringent quarantine measures.”

“The major gains in 2022 were seen in the imported petroleum excise tax, sweetened beverage excise tax, documentary stamp tax, and sin taxes on tobacco and alcohol. These amounted to P272.3 billion in total,” Diokno said.

Broken down, the first Tax Reform for Acceleration and Inclusion Act, or TRAIN 1A, generated net incremental revenue of P216.5 billion, up 26 percent from P171 billion in 2021.

Under TRAIN 1A, income tax rates were reduced for 99 percent of taxpayers, and at the same time, simplified estate and donor’s taxes. It also expanded the value-added tax base as well as adjusted oil and automobile excise taxes.

TRAIN 1A also introduced excise taxes on sweetened beverages and cosmetic products, as well as increased levies imposed on mining, tobacco, documentary stamp, and capital gains on traded and non-traded stocks.

The subsequent TRAIN 1B, which covered tax amnesty on delinquencies and estate, posted a decline in tax revenues from P4.6 billion to P1.4 billion in 2022.

On the other hand, revenues from the so-called TRAIN Package 2+ increased 23 percent to P65.3 billion last year from P52.9 in the previous year.

CTRP’s TRAIN Package 2+ raised sin taxes on tobacco, alcohol, and e-cigarette products to fund universal health care.

Based on the DOF data, total incremental revenues from these three tax reform packages under the CTRP reached P283.2 billion, higher by 24 percent compared with P228.5 billion in the previous year.

However, the DOF also reported that the government’s incurred losses from the Corporate Recovery and Tax Incentives for Enterprises (CREATE) rose 18 percent from P68 billion to P80.4 billion last year.

CREATE law reduced the corporate income tax rate in the country, from 30 percent to 20 percent. Large corporations also enjoyed a reduction in tax rate from 30 to 25 percent.

“It is the largest fiscal stimulus for businesses in our recent history. It is estimated to provide private enterprises more than P1 trillion worth of tax relief over the next 10 years,” Diokno said.