Diokno says existing Philippine tax system must be preserved; review to continue

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Diokno says existing Philippine tax system must be preserved; review to continue
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Finance Secretary Benjamin Diokno on Tuesday said the Philippines' tax system must be preserved, but added that the country's economic managers will continue to review it.

Finance Secretary Benjamin Diokno on Tuesday said the Philippines' tax system must be preserved, but added that the country's economic managers will continue to review it.

Diokno said the tax system was discussed with President Ferdinand "Bongbong" Marcos Jr. during a sectoral meeting earlier in the day. He said Marcos tasked them to "continue to look into it" as there is also the need to balance the system. "Na-discuss namin iyon kay Presidente and sabi niya continue to look into it kasi alam mo, binabalanse namin. Mayroon kasi tayong tinatawag na fiscal program na hanggang 2028 and right now marami rin demands sa spending side so kung mamimigay ng mga incentives ay mawawalan ka ng koleksiyon – so we are studying it," Diokno said.

Meanwhile, Diokno mentioned that from 2016 to 2020, the Philippines "posted the lowest VAT efficiency ratio in the ASEAN region at 40% based on total consumption."

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