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The Department of Finance (DoF) unequivocally denied claims suggesting the introduction of new taxes and emphasized that there is currently no requirement for extra revenue measures, considering the government’s strong fiscal standing.
On Tuesday, Finance Secretary Ralph G. Recto indicated that the government is effectively overseeing its finances, ensuring that public demands are fulfilled without imposing new taxes on the populace.
The Finance Chief articulated that as the primary custodian of fiscal prudence, the DoF emphasizes the crucial role of securing adequate resources to protect the economy, particularly during crises.
“Careful strategies have been devised to assure fiscal sustainability and create necessary buffers amidst escalating global economic uncertainty prompted by political discord, extended high interest rates, and unpredictable trade policies. However, given our current robust fiscal outcomes, these are unnecessary at this moment,” he stated.
Secretary Recto notably pointed out the substantial double-digit growth in tax collections during the first quarter of the year, which reaffirms the country’s fiscal stability.
In the first quarter of 2025, overall tax collections grew by 13.55% to P931.5 billion. Of this, the Bureau of Internal Revenue (BIR) reported P690.4 billion in collections, an increase of 16.67% compared to the same timeframe last year. Likewise, the Bureau of Customs (BoC) saw collections rise by 5.72%, totaling PHP 231.4 billion.
This growth was mainly due to both revenue agencies’ ongoing success in enhancing tax administration, digitalization, and enforcement efforts.
“At present, our existing revenues are abundantly sufficient to meet our spending requirements. We are fulfilling our duties, financing essential programs, and bolstering the economy without imposing new taxes on our kababayan,” he stressed.
“We are also effectively managing our deficit level, while upholding a sustainable debt path aligned with our Medium-Term Fiscal Framework (MTFF),” he added.
To maintain this progress, the DoF is dedicated to executing key measures that would retain and draw in more investments as well as generate additional revenues for the government, such as the CREATE MORE Act; the Ease of Paying Taxes (EOPT) Act; amendments to the Foreign Investment Act, the Retail Trade Liberalization Act, and the Public Service Act; and the Public-Private Partnership (PPP) Code, among others.
Simultaneously, the DoF will persist in exploring and enhancing non-tax revenue sources to achieve the revenue goals outlined in the Budget of Expenditures and Sources of Financing (BESF).
Meanwhile, the Cabinet Secretary warned the public against misinformation, especially with the national elections approaching in less than three weeks.
“Misinformation tends to spread during elections, particularly online. Regarding fiscal policies such as taxes, we urge the public to be more discerning, verify information on social media, and rely on announcements from official government sources.”
Mr. Recto reassured the public that the fiscal policies adopted in recent years have fortified the economy and that the government remains committed to ensuring growth and stability without imposing new taxes.
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