The government showed its tax collection efforts improved to 14.1 percent of gross domestic product (GDP) in the nine months to September from 13.7 percent a year earlier levels, the Department of Finance (DOF) said on Tuesday.
In a statement, the DOF also reported that the government’s total revenue effort reached a higher level of 15.8 percent of GDP during the nine-month period, compared with the year-earlier comparable figure of 15.3 percent.
“The full-year program revenue effort is 15.7 percent, which means we have already exceeded the target within the first nine months of the year,” said Finance Secretary Cesar Purisima.
Purisima added that over the past three years, the government has seen total and tax revenues growing faster than gross domestic product (GDP) rates.
The Finance chief noted that the first three quarters of 2014 were no exception to this trend as total revenues recorded a 12.5 percent increase, with tax revenues up 12.3 percent, both faster than the 9.1 percent nominal growth rate in GDP seen over the same period in the previous year.
“These latest tax and revenue effort figures, along with manageable national and general government debt levels, clearly manifest that the Philippines continues to stand on firm fiscal footing, which remains to be at the core of our country’s growth story,” he added