Philippines’ tax effort rose in 2021
The Philippines’ tax effort expanded to 18.1% in 2021, the second highest among eight Southeast Asian economies covered in the July 2023 edition of Revenue Statistics in Asia and the Pacific by the Organization for Economic Cooperation and Development (OECD). 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 effort remained below Asia-Pacific average of 19.8% and the OECD’s average of 34.1% in 2021. Bulk of the Philippines’ tax revenue came from taxes on goods and services (42.4%), followed by taxes on income and profits at 33.1%.
