No additional tax reform initiatives are underway beyond the ones already disclosed by the Marcos administration, the Department of Finance (DOF) announced.

Finance Secretary Benjamin E. Diokno said on Tuesday, July 25, that the government's revenue needs to fund the budget deficit can be met through better tax administrative measures.

Diokno said this strategy will be effective for the next two to three years of President Marcos’ term.

In his recent State of the Nation Address, President Marcos raised the need for further structural tax reforms to achieve the socioeconomic goals set by his administration.

When asked for clarification on whether this meant there would be additional tax reform proposals in addition to those already revealed, Diokno told Manila Bulletin, “Nothing beyond the ones already disclosed.”

Currently, the tax reform proposals put forth by the DOF include the imposition of an excise tax on single-use plastics, the value-added tax (VAT) on digital services, the rationalization of the mining fiscal regime, and the motor vehicle user's charge reform.

The DOF will also push for an increase in sin tax rates on sugary beverages.

If implemented between 2024 and 2028, the finance chief projected that these proposed tax measures—subject to certain conditions—could yield approximately P1 trillion in revenue.

“The tax system that we inherited is a good one, but it's not perfect, nothing's perfect, right? So I think for the first three years or two years, we can afford to just rely on administrative measures,” Diokno said.

“But down the road, we will continue to reform the tax system, and make it even better,” he added.

However, according to sources from the DOF, the department is currently considering a review of the existing revenue regulations that govern several laws in order to enhance tax administration.

In April, Diokno said the government's plan to pursue three tax reforms: motor vehicle road user's tax (MVRUT) reform, higher excise tax on sweetened beverages, and a new mining fiscal regime.

According to initial estimates by the DOF, these measures would generate additional revenue of P81.9 billion for the government in their first year of implementation.

The excise tax on sugary drinks is expected to contribute P53.7 billion, P15.8 billion for the MVRUT, and the mining tax will contribute P12.4 billion.

He said these new tax measures are in addition to the remaining tax reform packages left unfinished by the previous administration, including the Passive Income and Financial Intermediary Taxation Act, VAT on digital service providers, and excise taxes on single-use plastics and pre-mixed alcohol.

“The first four measures will have an impact on the 2024 budget and if we are being conservative, we are expecting revenues from the last three tax measures in 2025,” Diokno said.