The government has set higher goals this year for value-added and excise tax collections — major components of the country’s tax revenues — on the back of the recovering economy.
The government expects the economy to grow by 2.6–3.6 percent this year from 0.9 percent last year, when the global economic slump reached its height.
While it is normal for the government to target higher collections each year, “tax revenues, specifically VAT, [are] directly correlated to economic growth,” Finance Assistant Secretary for Fiscal Policy and Planning Ma. Teresa S. Habitan said via text at the weekend.
The government has set a P199.2-billion goal for VAT this year, more than half more than the P168.2-billion target last year, a document from the Finance department showed.