Manila: The government is studying possible reforms in excise and health taxes to offset an estimated PHP66 billion in foregone revenues from President Ferdinand R. Marcos Jr.'s proposed tax relief package, Malaca±ang said Thursday. Speaking to reporters, Palace Press Officer Claire Castro said the Department of Finance (DOF) is still evaluating tax measures that could help recover revenue losses while ensuring that the country's investment climate remains attractive.

According to Philippines News Agency, the DOF is currently studying proposed tax measures. Among the possible reforms being considered are adjustments to excise and health taxes that could offset the estimated PHP66 billion in revenue losses. Castro said the government recognizes that the projected revenue loss is significant because it could be used to fund various government projects and programs. She assured the public that all proposed measures would undergo thorough study to ensure they do not unduly affect investors while bringing greater benefits to the Filipino people.

Castro stated that higher taxes on products such as vaping products, sugary drinks, and single-use plastics are among the measures being considered to offset possible revenue losses. However, she mentioned that the government has yet to estimate how much revenue each proposed tax measure could generate, noting that the proposals are still under evaluation. She emphasized that the administration is considering all possible options to finance the tax relief package aimed at helping middle-income earners.

Castro reiterated that all proposals are being studied because, as the President said, he is committed to providing relief, especially for the middle-income sector. She added that everything is being done to ensure that the tax laws the President is seeking can be passed as quickly as possible. Castro noted that the details of the proposed tax measures would be discussed further once the study is completed.

In his fifth State of the Nation Address on Monday, Marcos urged Congress to pass measures that would expand income tax exemptions to workers earning not more than PHP350,000 annually and reduce income tax rates for other workers. The proposed tax reforms also seek to remove the minimum corporate income tax for small businesses and grant tax amnesty covering unpaid income tax, estate and donor's tax, value-added tax, and related penalties.