Philippines’ tax effort rose in 2019
The Philippines’ tax effort improved to 18% in 2019, the third highest among 10 Southeast Asian economies in the latest edition of A Comparative Analysis of Tax Administration in Asia and the Pacific by the Asian Development Bank. Tax effort refers to total tax revenue, including social security contributions, as a share of an economy’s gross domestic product (GDP). However, the Philippines’ tax-to-GDP ratio was still below Asia-Pacific average of 18.7% in 2019. Bulk of the Philippines’ tax revenue came from taxes on goods and services (42.8%), followed by taxes on income and profits at 35.6%.
