US Treasury to help in tax administration

October 28, 2024 | 12:00am

MANILA, Philippines — The Philippines has secured support from the US Department of the Treasury to help in the country’s tax administration system and boost revenue collection.

Finance Secretary Ralph Recto recently met with US Treasury senior officials to further collaborate on ways that could strengthen the Philippines’ tax and customs processes.

The meeting was conducted on the sidelines of the World Bank-International Monetary Fund annual meeting in Washington.

Recto said the Philippines and the US Treasury would explore more potential partnerships to improve the country’s fiscal management.

This includes possible collaboration for new debt-for-nature and debt-for-climate arrangements to finance the country’s global climate commitments.

Since 2022, the Philippine and US governments have concluded two debt-for-nature swaps worth $40 million.

This allowed the redirection of Philippine debt payments owed to the US toward forest protection, biodiversity conservation and climate action.

In 2015, the US Treasury also started providing technical assistance to the Bureau of the Treasury to help increase the Philippines’ domestic debt market liquidity and resilience.

This paved the way for an improved primary dealer system, new liability management instruments and a modern financial market infrastructure for government securities.

Further, Recto maintained that the Philippines has a robust economic outlook, with business-friendly reforms in place.

He said a key sector that is ripe for US investments is in defense and security following the government’s enactment of the Self-Reliant Defense Posture Revitalization law.

The law aims to boost local defense industries, enhance military modernization efforts and foster partnerships with allied nations.

Recto likewise highlighted the country’s strategic advantage as a key security partner of the US, citing both nations’ longstanding alliance and the Mutual Defense Treaty.

“The recent trilateral partnership between the US, the Philippines and Japan also strengthens the country’s position as a premier hub for American businesses, particularly in high-value industries such as semiconductors, renewable energy, power grids, telecommunications, data centers and cybersecurity,” Recto said.