THE Department of Finance (DOF) is studying additional tax measures to plug revenue leakages and boost government revenues, including a review of the de minimis import threshold and excise tax on online gambling, among others.
In a recent press chat, Finance Undersecretary of the Fiscal Policy and Monitoring Group (FPMG) Karlo Fermin S. Adriano said the DOF continues to review tax policies and administration.
‘We should always keep on improving, especially our tax system,’ Adriano said. ‘Even without instructions coming from anyone, that’s our mandate in the FPMG [Fiscal Policy and Monitoring Group] to review all of this tax policy, and we will continue to do that.’
This year, the government aims to collect P4.441 trillion in tax revenues, 8.9 percent higher than the P4.077.2 trillion generated in 2025.
The DOF has been examining the possible removal of the de minimis threshold, which exempts imported goods valued below P10,000 from customs duties and taxes.
While other countries have lower thresholds, Adriano said the international trend is toward removing the limit altogether.
Adriano said the exemption puts local manufacturers, whose products are generally subject to taxes, at a disadvantage, more so now with the growth of e-commerce platforms.
Removing the exemption would require legislation because the de minimis provision is covered by the Customs Modernization and Tariff Act.
‘We’re in the studying stage. Such that if there’s an opportunity, maybe us or the next admin, the DOF can push for it,’ Adriano said.
Online gambling tax
Meanwhile, the DOF also continues to study the possibility of imposing an excise tax on online gambling, as instructed by former Finance Secretary Ralph G. Recto before.
Recto, now the executive secretary, had floated the idea of increasing the rate that the government collects from licensed operators’ gross gaming revenues.
Raising the rate by 10 percent more, on top of the 38 percent the government currently levies, could translate to P20 billion more in revenues for the government every year, Recto said.
These potential tax measures come as the DOF also considers several proposed tax reliefs, including abolishing the travel tax and general tax amnesty.
Adriano said the DOF supports the removal of the travel tax, which could result in around P10 billion in foregone revenues, with Finance Secretary Frederick D. Go backing the measure.
‘We will be consistent with our mandate to generate revenues to fund all government programs,’ Adriano said.
As the government targets average annual tax revenue growth of 8 percent through 2029, Adriano said the DOF would assess the economic impact of each proposed tax measure before pursuing it.
‘If we find that it’s not [beneficial], then we will stop the proposal. There should be a clear rationale and benefit if we ever propose any taxes,’ he added.