Special DBCC Joint Statement

The Development Budget Coordination Committee (DBCC) continues to take the necessary measures to ensure that the economy remains on track with the Medium-Term Fiscal Framework (MTFF) and among the best-performing economies in Asia in 2023.

Revenue collections exceeded target

The National Government’s revenue performance is expected to exceed the target set during the 184th DBCC meeting in April 2023. For the first nine months of the year, total revenues reached Php 2.84 trillion, higher by 6.8 percent year-on-year. Both tax and non-tax revenues registered positive growth at 6.4 and 10.5 percent, respectively.

Actual revenue collections exceeded the program for the first nine months of the year by 3.0 percent, owing to the higher collections from the Bureau of Customs (BOC) and non-tax revenues of Php 152.57 billion.

The emerging total revenue collection for 2023 is estimated to be Php 3.84 trillion to Php 3.90 trillion, which is above the Php 3.73 trillion approved DBCC level for the year. Meanwhile, tax revenue is expected to be Php 3.50 trillion to Php 3.55 trillion.

The emerging revenue effort for 2023 is estimated to be at least 15.7 percent, surpassing both the MTFF target and 184th DBCC-approved level at 15.3 percent and 15.2 percent, respectively.

Tax policy and tax administration reforms

The Bureau of Internal Revenue (BIR) and the BOC are implementing several reforms to strengthen tax administration and enhance revenue collection, which include digitalization programs intended to eliminate corruption, increase transparency, and improve the ease of paying taxes.

The DBCC will closely work with Congress for the passage of the previous administration’s remaining tax reforms on passive income and financial intermediaries taxation and real property valuation and assessment, as well as new tax measures. These include the excise tax on single-use plastics (SUPs), rationalization of the mining fiscal regime, motor-vehicle road users’ tax, excise tax on sweetened beverages and junk foods, tax on pre-mixed alcohol, value-added tax (VAT) on digital service providers, carbon taxation, capital market development bill, and the military and uniformed personnel