The Department of Finance (DOF) on Tuesday denied reports of new taxes, saying there is no need for new taxes given the government’s robust fiscal position.
Finance Secretary Ralph Recto said the government is properly managing its finances, ensuring that public needs are met without burdening the citizenry with new taxes.
Recto said that as the government’s chief steward of fiscal discipline, the DOF upholds the vital responsibility of securing ample resources to safeguard the economy, especially in times of crisis.
“Strategic measures were prepared to ensure fiscal sustainability and provide necessary buffers amid rising global economic uncertainty due to political tensions, prolonged higher interest rates, and unpredictable trade policies. But given our current strong fiscal performance, these are not needed at this time,” he said.
Recto noted the strong double-digit growth of tax collections in the first quarter of the year, which reaffirms the country’s fiscal stability.
Data show that in the first quarter of 2025, total tax collections increased 13.55 percent to P931.5 billion. The Bureau of Internal Revenue (BIR) posted P690.4 billion in collections, or 16.67 percent higher than in the same period last year.
Bureau of Customs’ collections grew 5.72 percent to P231.4 billion in the same period.
Recto said this was primarily due to both revenue agencies’ continued success in strengthening tax administration, digitalization, and enforcement efforts.
“At this point, current revenues are more than sufficient to support our expenditure requirements. We are meeting our obligations, funding key programs, and growing the economy without having to impose new taxes on our kababayan,” he said.
“We are also decisively managing our deficit level, while maintaining a sustainable debt trajectory aligned with our Medium-Term Fiscal Framework,” said Recto.
He said to sustain this momentum, the DOF is committed to ensuring the successful implementation of critical measures that would retain and attract more investments as well as generate more revenues for the government such as the CREATE MORE Act; the Ease of Paying Taxes (EOPT) Act; the amendments to the Foreign Investment Act, the Retail Trade Liberalization Act, and the Public Service Act; and the Public-Private Partnership (PPP) Code, among other measures.
He said the DOF would continue to explore and strengthen non-tax revenue sources to meet the revenue targets set out in the Budget of Expenditures and Sources of Financing (BESF).
Meanwhile, Recto cautioned the public against disinformation, particularly with the national elections less than three weeks away.
“Disinformation tends to proliferate during the elections, especially online. With regard to fiscal policy such as taxes, we encourage the public to be more discerning, to verify information on social media, and to rely on statements from official government channels,” he said.
Recto assured the public that the government remains committed to balancing growth and stability without levying new taxes.
