Legislated policy reform a must to address tax gap – DoF

There is a need for tax policy reforms to address the collection gap from high-income earners and shift the tax burden from low- and middle-income households to the affluent sector, according to the Department of Finance (DoF).

Citing raw data from the Philippine Statistics Authority (PSA) and the Bureau of Internal Revenue (BIR), the DoF said in a statement Monday that 27.9 percent of taxes high-income earners should pay are uncollected as a result of a flawed system.