The Philippines government collected an additional $1.1 billion in taxes during the first quarter of 2017 compared to the same period in 2016, marking a 12.2 percent increase. This significant rise in tax revenue was achieved without raising tax rates, thanks to the rapid adoption of an electronic tax-filing system introduced by the USAID’s Facilitating Public Investment (FPI) program. The new system has made tax filing more accessible and efficient for taxpayers, leading to higher compliance and increased collections. Since 2013, the FPI program has been assisting the Philippines’ Bureau for Internal Revenue (BIR) in improving its e-filing and e-payment systems. The introduction of electronic BIR forms in 2015 saw a dramatic increase in e-filing, from 1.9 million electronic returns in 2014 to 17.4 million in 2016. This surge in e-filing has been observed across all taxpayer categories, as the new system proved to be stable and reliable. The FPI also supports the Department of Finance (DOF) in drafting comprehensive tax reforms and facilitating public-private policy dialogues. Beyond enhancing tax collection, the FPI program is also aiding the Department of Budget and Management (DBM) in various initiatives. These include supporting the passage of a new Budget Law, preparing a new Budget Manual, and developing a system for monitoring and evaluating expenditures. The program also focuses on improving government procurement processes and advising on budget decentralization. These efforts collectively aim to expand the Philippines government’s fiscal space for domestic development, ensuring sustainable and efficient use of resources.
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Philippines Boosts Tax Collections with E-Filing System

The Philippines government collected an additional $1.1 billion in taxes during the first quarter of 2017 compared to the same period in 2016, marking a 12.2 percent increase. This significant rise in tax revenue was achieved without raising tax rates, thanks to the rapid adoption of an electronic tax-filing system introduced by the USAID’s Facilitating Public Investment (FPI) program. The new system has made tax filing more accessible and efficient for taxpayers, leading to higher compliance and increased collections.

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