The World Bank has advised the Philippine government to broaden its tax base as a primary mechanism for generating additional revenue.
The recommendation comes as the administration pushes to expand the coverage of excise taxes, aiming to improve fiscal sustainability without necessarily raising rates on existing taxpayers.
The lender’s stance underscores the structural challenges facing the Philippine economy.
By widening the net of taxable activities and entities, the government could secure a more stable revenue stream to fund public services and infrastructure.
This approach is often favored by international financial institutions as a way to reduce reliance on volatile income sources and narrow the gap between potential and actual tax collection.
This fiscal advice arrives against a backdrop of other economic concerns identified by the World Bank.