Philip­pines fol­lows In­done­sia on taxes

Southeast Asia Globe - - Agenda -

In or­der to boost rev­enue to pay for its am­bi­tious $160 bil­lion in­fra­struc­ture spend­ing plans and help ward off a credit-rat­ing down­grade, Philip­pine fi­nance sec­re­tary Car­los Dominguez said his gov­ern­ment would fol­low the lead of In­done­sia, beef­ing up com­pli­ance and tar­get­ing tax evaders be­fore im­ple­ment­ing a tax amnesty.

“First we go af­ter them, show that this gov­ern­ment means busi­ness and has the po­lit­i­cal will to stop tax eva­sion,” he said.

In­done­sia’s nine-month tax amnesty boosted gov­ern­ment rev­enue by more than $10 bil­lion. It al­lowed cit­i­zens to put their tax af­fairs in or­der and pay a penalty rate of as low as 2% if they de­clared pre­vi­ously hid­den as­sets. The plan saw more than 970,000 peo­ple par­tic­i­pate.

The Philip­pines had a tax rev­enue ra­tio of 13.6% of gross do­mes­tic prod­uct in

2014 – lower than Malaysia and Thai­land – ac­cord­ing to data from the World Bank.

Philip­pine fi­nance sec­re­tary Car­los Dominguez

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