Philippines follows Indonesia on taxes
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