Department of Finance (DOF) Secretary Benjanin Diokno yesterday assured lawmakers that the Philippines will not be like Sri Lanka.
The Philippines has seen an elevated inflation rate along with the other countries in world.
Sri Lanka is facing a massive debt crisis and is said to be hurling toward bankruptcy.
Diokno, in a Senate Way and Means Organizational meeting chaired by Senator Win Garchalian, told senators the Philippines is prepared to address geopolitical risks and shifting economic landscapes.
The other challenges confronting the country and whole world, he said, are the lingering effects of COVID-19 and the unpredictable political economy. Senate Finance Committee chairperson Senator Sonny Angara questioned Diokno and other economic managers if the Philippines will not be another Sri Lanka.
But Diokno is confident that the country is on track to achieving revenue and tax effort targets.
He noted that the January to June 2022 revenues posted a double-digit growth of 15.9 percent compared to the same period in the same period last year. Diokno also cited the annual revenue collections which exceeded the DBCC-approved emerging target by 4.8 percent.
With the CREATE Law, he also said investment confidence has continuously improved.
But to accelerate recovery, Diokno said they have proposed the following: Real Property Valuation and Assessment Reform, imposition of VAT on digital goods and services, an excise tax on single-use plastic bags, passive income and financial intermediary taxation and rationalization of the mining fiscal regime.
He said the medium-term fiscal framework will promote sustainable long-term growth and solid fiscal management.
“We will work as one in building a robust economy for a faster, greener, and more inclusive growth that benefits all Filipinos,” he added.