Philippines targets 2028 for full digitalization of trade to curb red tape
By Derco Rosal
With more than 60 agencies set to join the national single window through an integrated trade facilitation platform (NSW-ITFP), the Department of Finance (DOF) revealed that full implementation of the program is expected by 2028, coinciding with the end of the Marcos administration.
“Full implementation will be done in two to three years, but the bulk of it will be rolled out this year,” DOF Undersecretary Rolando Ligon Jr. told reporters on the sidelines of the international tobacco agricultural summit last week. He noted that onboarding is already underway for those initial agencies.
In December 2025, the Department of Information and Communications Technology (DICT) and TradeX Network, Inc. signed a ₱393.8-million contract for the development and operation of the NSW-ITFP project under a build-operate-transfer scheme.
Finance Secretary Frederick Go previously stated that the platform will consolidate trade requirements into a single digital portal—reducing red tape, delays, and costs, which will eventually enhance trade and tax collection.
Ligon, who oversees the department’s Revenue Operations Group (ROG), said this centralized platform seeks to curb illicit activities and improve the ease of doing business in the country.
Under this program, businesses will only have to file once instead of visiting multiple agencies. For the agricultural sector, the system will allow for a single filing of entry that includes necessary approvals from the Department of Agriculture (DA).
According to Ligon, the multi-year timeline for full implementation is necessary because it is difficult to deploy everything simultaneously when different government offices use distinct platforms. By staggering the rollout, the government can manage operational issues and ensure a smoother transition for later participants.
The government aims to onboard approximately 20 to 30 agencies this year, and a similar number next year. As of June, the Bureau of Internal Revenue (BIR) and the National Tobacco Administration (NTA) are among the first to join the program.
Ligon explained that the program is being implemented under a public-private partnership (PPP), meaning there is no cost to the government, with only a minimal fee of approximately ₱70 per filing for the transacting public.
This modernization push comes as the BIR and the Bureau of Customs (BOC)—the country’s main tax collection agencies—maintain strong performances, with both consistently meeting their targets since January.
As of end-May, the BIR saw its tax revenue collection rise to ₱1.43 trillion, up from the ₱1.35 trillion collected during the same period in 2025. This figure topped the agency’s ₱1.42-trillion target, benefiting from an extended tax filing season.
Similarly, the BOC beat expectations through its ongoing modernization and accountability initiatives, collecting ₱406.4 billion as of end-May and posting a ₱9.3-billion surplus over its ₱397.1-billion target.
Even with fiscal pressures stemming from global oil disruptions, Ligon said the government currently has no plans to revise its revenue targets.
He added that the focus remains on maximizing existing resources rather than placing an additional burden on the public, noting that the priority is to ensure tax collection is "efficient, so that we don’t have to impose additional taxes.”
Ligon further stated that the DOF is monitoring global economic factors, such as the potential decline in oil prices. If oil prices remain below $80 per barrel, the government may not need to extend current fuel tax interventions beyond 2026, including the excise tax suspension on liquefied petroleum gas (LPG) and kerosene.
Additionally, Ligon said the DOF is conducting studies to rationalise tax rates on vape and tobacco products to address existing discrepancies between the two.