MANILA— It is up to the administration of President-elect Ferdinand "Bongbong" Marcos, Jr. whether they would push through with the Finance Department's tax proposals, Malacañang said Thursday.
Acting Palace spokesperson Martin Andanar said the expansion of the value-added tax (VAT) coverage and suspension of personal income tax reductions, among other things, were just recommendations from the Department of Finance.
The DOF earlier said tax proposals were "critical" so government can collect P349 billion in new revenues between 2023 and 2027 to help trim the country's P12.68 trillion debt.
"[These measures] are some of the proposals of the Department of Finance to the incoming Marcos Administration to raise the much-needed government revenues," said Andanar in a statement.
"However, we leave this matter, and other ways to mobilize resources, to the wisdom of the President-elect’s Economic Team," he added.
The new measures included a carbon tax, excise taxes on motorcycles, single-use plastics, and cryptocurrencies. The DOF said these aim to reverse in a span of 10 years the additional P3.2 trillion debt incurred by the government due to the COVID-19 pandemic.
Finance Secretary Carlos Dominguez III said without these measures, the government may need to cut spending on socioeconomic programs or to finance debts by borrowing more.
— Job Manahan and Jessica Fenol, ABS-CBN News