Philippines: Technical Assistance Report on Road Map for a Pro-Growth and Equitable Tax System
IMF Staff Country Reports, March 19, 2012
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- Philippines: Technical Assistance Report on Road Map for a Pro-Growth and Equitable Tax System
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Bibliographic details
- Published: March 19, 2012
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475502411.002
Summary
- The Technical Assistance Report on the Philippines’ road map for a pro-growth and equitable tax system is examined.
- Tax revenue has declined over the last decade in the Philippines owing to generous and expanding tax incentives, tariff rate reduction, deteriorating tax compliance caused by ineffective and inefficient revenue administration, and a gradual erosion of excise revenue owing to nonindexation.
- One of the key reasons for providing tax incentives in the Philippines is concern that the country needs to be competitive with other countries in the region to attract foreign direct investment.
Major findings
- Tax revenue has declined over the last decade.
- Causes of revenue decline identified:
- generous and expanding tax incentives
- tariff rate reduction
- deteriorating tax compliance caused by ineffective and inefficient revenue administration
- gradual erosion of excise revenue owing to nonindexation
- Policy motive highlighted:
- Concern to be competitive with other countries in the region to attract foreign direct investment is a key reason for providing tax incentives.
Subjects and keywords
- Subject: Corporate income tax, Excises, Income and capital gains taxes, Revenue administration, Tax incentives, Taxes
- Keywords: Corporate income tax, CR, excise rate, excise tax, Excises, flat rate, Global, gross sales, Income and capital gains taxes, income tax, ISCR, tax burden, Tax incentives, tax rate, tax revenue, tax system, taxable income, withholding tax