The Department of Finance (DOF) said the government is recognizing that domestic resource mobilization, including tax revenues, is critical for sustainable development. During the Addis Tax Initiative (ATI) General Assembly, Finance Secretary Benjamin E. Diokno said tax collection is a critical component of sustainable development, as it provides the resources necessary to finance essential public services. “We at the Philippine Department of Finance are one with the ATI in pursuing the Sustainable Development Goals (SDGs) by boosting tax collection through enhanced taxation and efficient domestic revenue mobilization,” Diokno said in a recorded statement. Diokno, however, admitted that the pursuit of SDGs has been challenging due to geopolitical tensions, the devastating impact of the pandemic, and the escalating climate crisis. The finance chief said this confluence of factors hindered countries to make significant progress toward achieving development goals. ATI is a partnership between 71 countries, development partners, and supporting organizations that collaboratively promote fair and effective domestic revenue mobilization (DRM) through strategic partnerships and knowledge building. The initiative seeks to foster collective action toward improving tax systems, a fundamental aspect of sustainable development. Against the backdrop of the theme "Stepping up financing for sustainable development," the 2023 ATI General Assembly convened ATI members for high-level discussions on the progress and challenges of DRM. In March, the Philippines hosted the 2023 ATI Regional Workshop on Tax Expenditures, which brought together global tax experts to discuss the importance of reducing unnecessary tax expenditures in tax systems. Diokno shared the Philippines’ strategy of broadening the tax base in order to boost revenue collection, ease the tax burden on Filipinos, and maintain fiscal sustainability. The government has pursued revenue-enhancing policies and game-changing reforms that enhance fiscal consolidation efforts and improve revenue generation mechanisms. The Tax Reform for Acceleration and Inclusion (TRAIN) Act and the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act are landmark reforms that provided significant relief to taxpayers while generating much-needed revenues. “These efforts made the Philippines one of the economic leaders in the region, growing over 6 percent annually before the pandemic struck. The same reforms helped us gain the financial strength to weather the worst of the Covid-19 crisis,” Diokno said. For proper DRM, the government has been expediting its digitalization efforts in order to eradicate corruption and improve the efficiency of the Bureau of Internal Revenue (BIR) and Bureau of Customs. As a result of these efforts, both revenue agencies were able to sustain their operations throughout the pandemic and exceed their collection targets. According to Secretary Diokno, the government will continue to pursue structural reforms in tax administration through the Medium-Term Fiscal Framework (MTFF), which is the country’s blueprint towards fiscal sustainability. “The Philippines believes that enhanced domestic revenue mobilization and sound fiscal management are vital requirements for inclusive and sustainable growth,” he said.