Latest news with #RalphRecto
Business Times
7 days ago
- Business
- Business Times
Philippines cuts 2025 GDP growth goal, trims inflation view
[MANILA] The Philippine government has cut its economic growth target for this year as the conflict in the Middle East added to risks from the impact of the Trump administration's trade war. The economy is now targeted to expand 5.5 per cent-6.5 per cent this year from a previous goal of 6 per cent-8 per cent, Finance Secretary Ralph Recto said in a mobile-phone message on Thursday (Jun 26). The downward revision underscores the mounting challenges to the Philippine economy, which expanded slower than expected last quarter, partly as the Trump administration's tariff threats hurt global sentiment. The South-east Asian nation that's reliant on fuel imports is also vulnerable to oil price shocks due to Israel-Iran tensions. Recto said the government's inflation assumption for 2025 has also been narrowed to 2 per cent-3 per cent from a previous outlook of 2 per cent-4 per cent. The revised outlook supports the case for further monetary policy easing from the central bank, especially as traders and governments worldwide remain on edge due to the Middle East conflict, and as Trump continues to wage a trade war. Although the Philippines is less trade-dependent than neighbouring countries, its exports to the US are now subject to a 10 per cent tariff, which could rise to 17 per cent if the country fails to get Washington to agree to a reduction. BLOOMBERG
Bloomberg
7 days ago
- Business
- Bloomberg
Philippines Cuts 2025 GDP Growth Target, Finance Chief Says
The Philippine government has cut its economic growth target for this year as the conflict in the Middle East added to risks from the impact of the Trump administration's global trade war. The economy is now targeted to expand 5.5%-6.5% this year from a previous goal of 6%-8%, Finance Secretary Ralph Recto said in a mobile-phone message on Thursday.
GMA Network
7 days ago
- Business
- GMA Network
DOF OKs donation of seized gasoline to PCG
The Department of Finance (DOF) said Thursday it has approved the donation of 1,251.68 liters of seized gasoline to the Philippine Coast Guard (PCG). In a statement, the DOF said Finance Secretary Ralph Recto gave the thumbs up for the donation of seized fuel to the PCG in 'support the country's maritime safety and security operations.' The 1,251.68 liters of gasoline were forfeited by the Bureau of Customs (BOC) pursuant to Section 1113 of the Customs Modernization and Tariff Act (CMTA) for violating fuel marking regulations. Fuel marking, which involves injecting chemical identifiers into tax-paid oil products, is being carried out under the Tax Reform for Acceleration and Inclusion (TRAIN) Act to curb the smuggling of petroleum products. The donation of the seized gasoline was in line with President Ferdinand Marcos Jr.'s 'directive to intensify the fight against smuggling and strengthen national security.' 'This donation not only shows our commitment to bolstering our defense sector, but is a clear warning to all businesses that any illicit act will not go unpunished. Hinding hindi namin palalampasin ang anumang panlalamang at iligal na gawain (We will not tolerate illegal activities),' said Recto. Section 1141 of the CMTA authorizes the donation of goods subject to disposition to another government agency, upon the approval of the Secretary of Finance, according to the DOF. — Ted Cordero/RSJ, GMA Integrated News
Coin Geek
20-06-2025
- Business
- Coin Geek
Philippines to implement ‘crypto' tax framework by 2028
Getting your Trinity Audio player ready... The Philippine government has committed to adopt an international reporting framework for digital currency assets by 2028, aligning with global efforts to curb cross-border tax evasion and illicit financial flows. The move underscores the country's Department of Finance's (DoF) push to strengthen fiscal transparency as digital currencies become more mainstream in the country. 'We need faster and stronger systems for collaboration if we are to beat tax evasion and illicit transactions,' Ralph Recto, Finance Secretary, said in a statement. 'The government must ensure that crypto-asset users are paying their fair share of taxes and that no illicit financial activity goes unpunished.' Joining 67 jurisdictions in global tax transparency initiative Source: Department of Finance/Facebook During the 8th Asia Initiative Meeting held in Malé, Maldives, Finance Undersecretary Charlito Martin Mendoza formalized the country's commitment to adopt the Crypto-Asset Reporting Framework (CARF), developed by the Organisation for Economic Co-operation and Development (OECD). The CARF is designed to standardize the automatic exchange of tax information on crypto-assets across jurisdictions. The framework ensures that individuals and entities engaging in cross-border digital asset transactions cannot hide income or gains from tax authorities. The Philippines joins 67 jurisdictions, 10 of which are in Asia, that have pledged to implement the CARF by either 2027 or 2028. The timing of the country's commitment aligns with the end of President Ferdinand Marcos Jr.'s six-year term, during which fiscal discipline and transparency have been recurring themes. 'This is a timely commitment as digital currency becomes one of the preferred means for transactions,' Recto noted. Digital currency growth and risks in the Philippines Recto previously stated that Filipinos have invested an estimated PHP6 trillion ($107 billion) in digital currencies, more than double the combined size of the country's business process outsourcing and offshore gaming sectors. 'In the Philippines, a lot of Filipinos have already invested in crypto. Something like 6 trillion pesos worth of investments in crypto is being done,' Recto told Bloomberg in an interview earlier this year. He attributed this growth to a tech-savvy, youthful population and the widespread use of digital wallets, noting that 90 million Filipinos now use such tools to save, invest, and transact. However, third-party data paints a more measured picture. Blockchain analytics firm Chainalysis estimated the Philippines' 2024 crypto flows at $43.1 billion, down from $66 billion in 2023. The firm attributed the apparent 40% drop to revised methodologies for tracking decentralized finance (DeFi) activity. Despite the discrepancy, the numbers underscore the importance of tax authorities keeping pace with the rapid adoption of digital currencies. The decentralized and borderless nature of digital assets presents challenges for enforcement and taxation. Boosting exchange of information ahead of CARF rollout The DOF also reported on parallel efforts to improve tax transparency and compliance mechanisms. At the Asia Initiative Meeting, the department shared the country's progress in adopting the Convention on Mutual Administrative Assistance in Tax Matters (MAAC), a multilateral tool for tax assessment and collection cooperation. It also outlined the steps taken to prepare for the Enhanced Monitoring Process, the strengthening of the Exchange of Information (EOI) on request, and the adoption of the Common Reporting Standards (CRS). The Asia Initiative aims to enhance international cooperation on tax transparency and combating illicit financial flows. The Philippines became a member in 2023 and has since been working to align with globally agreed-upon standards. The meeting also marked the launch of the 2025 Tax Transparency in Asia Report, which details regional progress made in applying tax transparency frameworks throughout 2024. Globally, efforts in tax transparency have proven effective. From 2009 to 2024, at least €24 billion ($27 billion) in additional revenue has been identified through EOI, offshore investigations, AEOI (Automatic Exchange of Financial Account Information), and related disclosure programs. In 2024 alone, €1.9 billion ($2 billion) in undeclared income was identified through these means. Raising revenue without tax hikes The CARF commitment comes as the Marcos administration reiterates its intention not to introduce new taxes. Instead, it aims to increase state revenue through improved collection and enforcement. This policy direction already has been bearing results, according to the government agency. In April 2024, revenue collection reached PHP522.1 billion ($9 billion), bringing the total for the first four months to PHP1.5 trillion($26 billion). Of this, 94% came from taxes, thanks to an 11.49% increase in tax revenues. The DOF says the digital currency framework complements these efforts by plugging gaps in areas where tax evasion risks are highest. Watch: The Philippines is moving toward blockchain-enabled tech title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
GMA Network
18-06-2025
- Business
- GMA Network
PH to implement crypto-assets reporting framework
The Department of Finance (DOF) on Wednesday said the Philippines is committing to implement a framework on reporting crypto-assets in a bid to combat cross-border tax evasion and illicit financial flows. In a statement, the DOF said the commitment to execute the Crypto-Asset Reporting Framework (CARF) by 2028 was signified by DOF Revenue Operations Group Undersecretary Charlito Martin Mendoza during the 8th Asia Initiative Meeting in Malé, Maldives held from May 26 to 29, 2025. The CARF institutionalizes the framework for the reporting and automatic exchange of information in relation to crypto-assets between tax authorities for tax compliance purposes. The Philippines now joins 67 other jurisdictions already committed to implementing the CARF by 2027 or 2028. 'We need faster and stronger systems for collaboration if we are to beat tax evasion and illicit transactions. This is a timely commitment as digital currency becomes one of the preferred means for transactions,' said Finance Secretary Ralph Recto. 'The government must ensure that crypto-asset users are paying their fair share of taxes and that no illicit financial activity goes unpunished,' added Recto. —VAL, GMA Integrated News
