Mr. President, across the country, one sentiment is becoming louder and harder to ignore: Filipinos feel overtaxed, yet underserved.

Despite paying multiple layers of taxes — income tax, VAT, excise taxes, and various transaction taxes — many citizens still struggle with inadequate public services, high cost of living, and limited economic opportunities.

Your administration’s move to prioritize the abolition of the travel tax is a welcome and timely step. It signals that government is listening to the burdens faced by ordinary Filipinos.

But we must be candid: This is not enough.

The Philippines is not just facing a tax problem. We are facing a system design problem.

A system that enables inefficiency and corruption

Revenue collection remains fragmented between the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) — two agencies operating under different systems, data frameworks, and enforcement cultures.

This fragmentation results in:

• inefficiency
• high compliance costs
• discretionary enforcement
• and persistent corruption risks.

With a Corruption Perceptions Index (CPI) score of 32/100, the Philippines continues to lag behind many ASEAN neighbors such as Singapore and Malaysia, which have stronger, more integrated institutions.

This matters.

Because corruption is not only a moral issue. It is an economic issue.

It discourages investment, weakens tax compliance, and ultimately deprives the country of revenues needed for development.

Three strategic reforms

Mr. President, meaningful change requires more than isolated tax measures. It requires a comprehensive, strategic approach.

1. Reduce the burden on Filipinos

• Abolish the travel tax
• Reduce VAT from 12% to 10%
• Increase income tax exemption thresholds

We must make the system fairer, simpler, and more competitive.

2. Ensure fair share from multinationals

• Immediately adopt the OECD Global Minimum Tax

The Philippines may have foregone over ₱50 billion annually by not implementing top-up taxes on large multinational enterprises.

This is revenue we can collect without increasing the burden on Filipino taxpayers.

3. Fix the system: Establish a National Revenue Authority

The proposed National Revenue Authority (NRA) — supported by former president Gloria Macapagal Arroyo — offers a transformative solution.

By integrating the BIR and BOC into a single, modern institution, the NRA can:

• eliminate fragmentation
• reduce discretion
• enable AI-driven, risk-based audits
• improve transparency and compliance

This is not about abolishing institutions.

It is about redesigning the system to work.

Governance or structure? It is both

Some argue that the problem is governance, not structure.

But when inefficiency and corruption persist despite repeated reforms, we must ask:

Is the problem behavior — or the system itself?

A fragmented system breeds inefficiency.

A discretionary system breeds corruption.

At some point, reform is no longer incremental. It must be transformational.

A defining moment

The inclusion of travel tax reform in your agenda is a positive signal.

But if we stop there, we miss a historic opportunity.

Mr. President, the Philippines needs more than relief.

We need a system that works.

A tax system that is:

• fair to taxpayers
• efficient for businesses
• transparent for government
• competitive in ASEAN and globally

The call

Do not just remove one tax. Let’s fix the system.

Because in the end, tax reform is not just about revenue.

It is about restoring trust, strengthening governance, and securing the future of the Philippines. – Rappler.com

Got questions or thoughts on the controversial LOAs of the Bureau of Internal Revenue? Join Rappler’s Ask Me Anything session with tax expert Mon Abrea on Tuesday, February 17, at 3 pm.

Mon Abrea is a tax policy expert and the founder and chief tax advisor of Asian Consulting Group, advising governments, multinational firms, and investors on tax reform and investment strategy. He holds degrees and executive training from Harvard University, Duke University, and the University of Oxford.