Non-tax revenue constitutes 6% of total PH revenue
On average, the share of non-tax collections is around 9.6% under the Duterte administration. While Pacquiao is down a few percentage points, projected non-tax collections for 2021 were actually 6.45% of target total revenue.
In one look
- To claim: Non-tax revenues constitute 6% of the country’s total income.
- Rating: MISSING CONTEXT
- Facts: Senator and presidential candidate Manny Pacquiao did not specify which year he was referring to, but Treasury Office data showed that non-tax revenues contributed 9.28% or 257 billion pesos to total income of the Philippines from January to November in 2021.
- Why did we check this: Pacquiao made the claim at the KBP presidential forum on February 4.
During the Panata sa Bayan: the forum for candidates for the presidency of the KBP on Friday, February 4, presidential candidate Senator Emmanuel “Manny” Pacquiao claimed that the Philippines’ non-tax revenue constituted 6% of the country’s total income.
In his response to Roby Alampay’s question about where he would get the funds for his programs, Pacquiao said the government does not rely solely on taxes to generate revenue.
“Mayroon pong tinatawag natin na non-tax revenue income. Dapat ‘yung non-tax revenue income palakasin natin para hindi lamang sa tax revenue income magre-rely ang ating bansa. Kaya lang po, angyayari ay…dito to ating gobyerno a nasa mga 6% lamang po annually and naiaambag na source of income from non-tax revenue“, said Pacquiao at 1:01:54 from the forum.
(We have what we call non-tax revenue. Non-tax revenue needs to be strengthened so that our country does not depend solely on tax revenue. But what happens is that non-tax revenue only contributes to 6% to our income [annually].)
Pacquiao also said the government should rely more on non-tax revenue to slow tax hikes.
The claim that non-tax income is 6% of the country’s total income lacks context.
According to the Congressional Policy and Budget Research Development website, non-tax revenue consists of royalties collected from services provided by government agencies to the public and from government regulatory and investment activities.
Data from the Treasury Office showed that non-tax revenue contributed 9.28% or 257 billion pesos to the Philippines’ total revenue from January to November in 2021.
On average, the share of non-tax collections is about 9.6% under the Duterte administration, except in 2020 when it was at its highest at 12.3%. Data from the past decade, meanwhile, puts the average at 10.7%.
While Pacquiao was down a few percentage points, projected non-tax collections for 2021 were actually 175.4 billion pesos, or 6.45% of total target income. Based on actual collections, however, the Philippine government has earned more than the target.
According to data from the Organization for Economic Co-operation and Development, the Philippines’ non-tax revenue to gross domestic product (GDP) ratio from 2014 to 2019 did not reach 2%.
CPBRD data shows that the government earned 210.2 billion pesos in non-tax revenue from January to September 2021, which represents 1.08% of the country’s total GDP.
The ratio of non-tax revenue to GDP shows the importance of the contribution of non-tax revenue to the country’s total income.
A CPBRD report showed that the Philippines had the lowest non-tax revenue-to-GDP ratio among member states of the Association of Southeast Asian Nations from 2014 to 2016. – Aika Rey and Lorenz Dantes Pasion/Rappler.com
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