Recto to prioritize pending tax reforms

Newly appointed Finance Secretary Ralph Recto has committed to focusing on tax measures deemed a priority by President Marcos.

- LOUISE MAUREEN SIMEON

After taking his oath, Recto outlined his strategies for achieving inclusive economic growth that will benefit every Filipino.

Recognizing the country’s limited fiscal space due to the pandemic, Recto said he would advocate for the immediate passage of key tax reforms endorsed by the President as priority measures to Congress.

“I agree that we need funds to finance growth and our people’s growing needs, and install a system that promotes fair and fast tax administration,” Recto said.

“These measures will not only finance development but will reduce the deficit and our dependence on debt,” he said.

For Albay Rep. Joey Salceda, the new finance chief should give utmost priority to three of the “most urgent” tax policy objectives to reform the country’s tax system.

He said the country is in an “awkward position of being among the first to propose a digital services value-added tax (VAT).

Bu despite this, he underscored the Philippines is the last in ASEAN-6 to actually pass such a tax and this must be addressed soon.

Salceda also noted the second priority should be electronic commerce which is now the “driving force of consumer demand.”