In a news release, the DOF said the performance marks one of the Bureau’s strongest quarters on record, underscoring sustained gains from reforms and tighter enforcement.

Finance Secretary Frederick D. Go commended the agency, citing improved governance and accountability as key drivers of the result.

“The Bureau of Customs’ highest-ever first-quarter collection demonstrates that our commitment to reforms, transparency, and accountability is delivering real results. These gains will directly support the government’s priority programs and benefit the Filipino people,” Secretary Go said.

The BOC attributed the outcome to coordinated efforts across its ports and subports nationwide, which ensured the efficient and lawful collection of duties and taxes.

A major boost came from the agency’s intensified campaign against illegal trade. Revenues were reinforced by the public auction of forfeited goods, including smuggled high-end vehicles, effectively converting illicit assets into public funds.

Post-clearance audit operations were also strengthened, improving compliance and ensuring accurate payment of duties and taxes.

The Bureau noted that the first-quarter performance is second only to the record collections posted from July to September 2025 under the current leadership.

The BOC said the results align with the directive of President Ferdinand R. Marcos Jr. and the fiscal strategy of the Department of Finance to strengthen revenue generation while maintaining transparency and accountability.

“Every peso we collect helps fund essential services, advance national development, and build a better future for every Filipino,” Secretary Frederick Go added.

The grant will finance the Promoting Growth, Resilience, Economic Stability and Sustainability in the Philippines (PROGRESS) Program, Australia’s flagship initiative aimed at supporting inclusive and climate-resilient economic growth in the country.

Under the program, funds will be used to reduce barriers to doing business, support small and medium enterprises (SMEs), strengthen government institutions, and advance reforms in key sectors such as energy transition and critical minerals.

The Subsidiary Arrangement for PROGRESS was signed by Finance Secretary Frederick D. Go and Australian Ambassador Marc Innes-Brown.

The DOF said the grant is designed to address long-standing challenges, including slow formal job creation, income inequality, and systemic barriers affecting women, persons with disabilities, and marginalized groups, while also helping the country navigate global uncertainties and climate risks.

A key component of the program is support for private sector growth, particularly through easing regulatory bottlenecks and expanding SME investments in clean energy, climate mitigation, and other high-growth sectors.

The program will also provide technical assistance to build institutional capacity, climate finance mechanisms to mobilize investments, and a Strategic Activities Fund (SAF) to support research, innovation, and targeted reforms.

Implementation will be overseen by the DOF in partnership with Australia’s Department of Foreign Affairs and Trade, with support from key Philippine agencies including the Anti-Red Tape Authority, Department of Energy, Department of Trade and Industry, and the Department of Economy, Planning, and Development.

The DOF said the initiative is expected to translate into more quality jobs, stronger businesses, and a more resilient Philippine economy.

The planned investment, discussed during a mid-March meeting with Finance Secretary Frederick D. Go, underscores increasing investor confidence in the Philippines’ tech-driven growth story and its long-term economic fundamentals.

The Department of Finance (DOF) said the capital infusion is expected to expand access to funding for high-growth startups, enabling them to scale operations, generate jobs, and deliver more competitive products and services.

“Foxmont’s continued engagement with Philippine startups reflects strong confidence in the country’s long-term fundamentals and policies. Their investment will help our startups scale, strengthen Filipino talent, foster innovation, and build agile enterprises that deliver more accessible products and services to Filipinos,” Secretary Frederick Go said.

Foxmont, a Philippines-focused venture capital firm, is doubling down on the local ecosystem as momentum builds. The country’s startup sector attracted $1.5 billion in private capital in 2025, a 34% increase from the previous record of $1.12 billion, signaling stronger investor appetite for technology-enabled enterprises.

The firm is currently raising its third fund and aims to expand investments in companies addressing real market needs while driving inclusive growth.

“Foxmont’s planned investments into the Philippines reflect our continued conviction in Philippine companies that can drive productivity, scale efficiently, and compete in higher-value sectors. We see strong opportunities to work alongside partners across government and the broader ecosystem to deepen private capital’s impact on the economy,” said Foxmont Managing Partner Franco Varona.

Since 2018, Foxmont has deployed over ₱1 billion across two funds, backing startups in fintech, e-commerce, and digital platforms.

Despite recent gains, Foxmont noted that private capital in the Philippines still accounts for only 0.3% of GDP, leaving significant room for expansion. Its latest investment plan signals confidence that the country can further position itself as a competitive player in the global startup landscape.

The DOF, for its part, reaffirmed support for initiatives that attract venture capital and scale innovation-driven enterprises, viewing private capital as a key driver of job creation and long-term economic growth.

The financing, signed on March 17, 2026, will support the Marine Ecosystems for Blue Economy Development Program Subprogram 1 (MEBED1), a government initiative focused on strengthening the protection, restoration, and sustainable management of coastal and marine resources.

Finance Secretary Frederick D. Go said the investment is aimed at turning environmental protection into a driver of economic growth.

“By strengthening the foundations of the blue economy, we are securing livelihoods, raising incomes, and reinforcing a vital engine of national growth, today and for the future,” he said in a news release.

The €200-million financing from KfW will fund reforms and operations to improve regulatory capacity and address long-standing challenges in managing the country’s marine and coastal ecosystems.

The program is expected to benefit over three million Filipinos, including fisherfolk, aquaculture operators, and tourism workers, by creating more sustainable income opportunities and strengthening the resilience of coastal communities.

The agreement was signed by Secretary Go and KfW Management Committee Member Stephan Opitz, underscoring the growing development partnership between the Philippines and Germany.

Go said the deal reflects a shared commitment to aligning environmental protection with economic development.

The signing ceremony was attended by DOF Undersecretary Joven Z. Balbosa and German Embassy Deputy Head of Mission Mathias Kruse.

KfW is Germany’s state-owned development bank, headquartered in Frankfurt, and is among the largest development financing institutions in the world.

“In times of global uncertainty, close collaboration among ASEAN+3 economies is more crucial than ever. By anticipating risks, sharing insights, and coordinating policy responses, member economies can navigate these challenges together,” the DOF said in a news release.

ASEAN+3 refers to the cooperation framework among the Association of Southeast Asian Nations (ASEAN) Member Countries and the three East Asian countries, namely China, Japan, and South Korea. Established in 1997, ASEAN+3 aims to strengthen regional integration and build an East Asian Community.

The ASEAN+3 Finance Process serves as a platform for member economies to discuss financial and macroeconomic developments and address regional risks and challenges, the DOF said.

While each economy manages its own domestic pressures, a united regional approach is key to building resilience and safeguarding stability against external shocks.

In line with this, the DOF pushed to advance regional disaster risk financing in response to climate-related challenges.

Member economies expressed support for continued collaboration and for creating a roadmap to boost regional resilience and preparedness, which will be further discussed at the ASEAN+3 Finance and Central Bank Deputies’ Meeting (AFCDM+3) in April 2026.

This vision of support was evident at the second Task Force Meeting held from March 3-4, 2026, in Osaka, Japan, which was co-chaired by the DOF and the Bangko Sentral ng Pilipinas (BSP), together with the Japan Ministry of Finance (JMOF) and the Bank of Japan (BOJ).

International Finance Group (IFG) Assistant Secretary Donalyn U. Minimo, who co-chaired the meeting, said that recent disruptions in the Strait of Hormuz and the resulting volatility in oil and LNG prices have direct impacts on fiscal space, economic growth, and livelihoods.

Member economies likewise supported ongoing discussions on the DOF-championed Sovereign Asset and Fiscal Empowerment (SAFE) Facility, which embeds disaster insurance directly into development projects financed by bilateral and multilateral partners.

The DOF also continued to advance the Philippines- and Japan-led ASEAN+3 Fiscal Exchange, a platform for Finance Ministries to share best practices and insights, strengthening collective regional resilience.

The Philippines is Chair of the 2026 ASEAN, with the theme “Navigating Our Future, Together.”

In a news release, Finance Secretary Frederick D. Go said the milestone reflects not just industry expansion but a shift in public mindset toward securing the future.

“Beyond the numbers, this milestone tells us something even more important. It reflects broader public participation and a growing awareness among Filipinos that insurance is an essential tool for financial protection. This also reaffirms the industry’s role as a cornerstone of economic resilience,” he said during the Insurance Commission’s (IC) 77th anniversary on March 16.

Data from the IC showed that the industry’s asset base — largely invested in government securities and domestic instruments — continues to support infrastructure financing and national development priorities.

Growth was also evident across related sectors. Health Maintenance Organizations (HMOs) paid out ₱12.10 billion in benefits and claims in 2025, underscoring expanded access to healthcare.

Meanwhile, the pre-need sector posted ₱23.94 billion in premium income by the fourth quarter, with nearly 896,000 plans sold, indicating stronger demand for education and memorial planning products.

Go said the government will continue pushing for broader coverage, particularly among underserved communities, by strengthening microinsurance, accident coverage, and Takaful or Shariah-compliant insurance.

At the same time, he emphasized the need for reforms to sustain growth, including improved consumer protection and accelerated digitalization to make insurance services faster, simpler, and more secure.

The finance chief also highlighted the importance of deeper collaboration with ASEAN and global partners to develop more inclusive and responsive policies.

The IC, an attached agency of the Department of Finance, regulates the insurance, pre-need, and HMO sectors.

With sustained growth across premiums, assets, and coverage, the insurance industry is emerging as a key pillar of both household financial security and the country’s broader economic resilience.

The Philippines’ first Growth and Jobs Development Policy Loan (G&J DPL1), backed by the World Bank-International Bank for Reconstruction and Development (WB-IBRD), is a policy-based budget support for the Philippine government’s reform agenda.

This is the first WB financing to be secured under Finance Secretary Frederick D. Go’s leadership, which aims to strengthen fiscal sustainability and accelerate economic recovery and job creation.

“This financing from the World Bank is a strong vote of confidence in the Philippines’ growth path. Part of what makes this financing so important is our firm commitment to fiscal discipline, ensuring that every peso is spent wisely to create jobs, support businesses, and strengthen public services for the benefit of all Filipinos,” Secretary Go said.

“I thank the World Bank for their continued partnership in helping the Philippines achieve its growth and development goals,” he added.

The JPY 123.088 billion (USD 800 million) DPL will focus on three pillars.

First is strengthening fiscal management by improving resource mobilization and spending wisely to ensure that funds are directed towards priority investments in infrastructure and human capital.

Second is enhancing opportunities for private investment and innovation through policies that streamline ease of doing business and allow them to grow and offer quality jobs.

Third is building labor force capabilities by improving education to technical and vocational training so workers have the skills to access higher-quality jobs and businesses can find the talent they need to expand.

The WB-IBRD is providing the G&J DPL1 in recognition of the Philippine government’s accomplishments in policy reform and its ongoing commitment to deliver results.

“The World Bank is proud to continue supporting the Philippines’ priorities — turning strong growth into more and better-paying jobs. By strengthening fiscal foundations, improving the business climate, and investing in human capital, this effort will unlock private investment and equip people with the skills they need to find jobs and thrive,” said Zafer Mustafaoğlu, World Bank Division Director for the Philippines, Malaysia, and Brunei.

The WB-IBRD financing supports the Philippines government’s efforts to create jobs, boost growth, and strengthen public services.

To achieve this, the DOF is strengthening coordination between the Revenue Integrity Protection Service (RIPS) and the Revenue Operations Group (ROG), underscoring the DOF’s strict zero-tolerance policy on corruption.

“This collaboration is necessary to build a stronger, more transparent revenue system––one where corruption cannot thrive,” Finance Secretary Frederick D. Go said in a recent news release.

“Hindi natin hahayaang masayang ang bawat pisong pinaghirapan ng ating mga mamamayan. Kaya sisiguraduhin naming mas mabisa ang monitoring, mas mabilis ang pamamahagi ng impormasyon, at mas maayos ang pagpapatupad ng mga patakaran,” he added.

To drive this initiative forward, the DOF recently welcomed the appointment of Rolando T. Ligon Jr. as Undersecretary for the ROG and Supervising Undersecretary for the RIPS to oversee the coordinated operations of both offices.

The RIPS is the DOF’s anti-corruption arm mandated to prevent, detect, and investigate corrupt practices in revenue collection. The office conducts lifestyle checks and fact-finding investigations to ensure officials and employees do not acquire wealth beyond what their lawful income can justify.

Complementing the RIPS’ functions, the ROG oversees and supervises the operations of revenue-generating agencies, such as the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC), ensuring effective revenue administration.

As part of this strengthened collaboration, the RIPS and the ROG are closely monitoring examiners’ compliance with the BIR’s updated guidelines on the issuance of Letters of Authority (LOA) to improve transparency in the audit process and reduce opportunities for abuse, corruption, and revenue loss.

“Through vigilant monitoring, lifestyle checks, and coordinated action, we remain committed to ensuring that public funds are collected lawfully, efficiently, and with integrity for the benefit of the Filipino people,” Secretary Go said.

“I thank the World Bank for its continued support to the Philippines. These grants are vital for project development, and we will ensure they are finalized and signed without delay so the benefits reach our fellow countrymen as soon as possible,” Secretary Go said in a news release.

Through the World Bank’s Grant Facility for Project Preparation (GFPP), three new grants were approved this year to strengthen project preparation — ensuring sound technical, financial, environmental, and social foundations that minimize delays and accelerate project delivery.

Grants are financial assistance from development partners provided at no cost to the Philippine Government, fully funding critical preparatory work and enabling the government to preserve fiscal space while advancing priority projects.

Among the approved initiatives are the following:

1. Improving MSME Access to Finance and Resilience to Climate Shocks Project of the Department of Agriculture (DA). Supported by a US$1.21 million grant, the project will strengthen agricultural financing, modernize insurance systems, and improve rural development institutions. It is envisioned to help the DA address implementation risks early and boost productivity, increase rural incomes, create jobs, improve food security, and help communities better cope with climate-related shocks.

2. Philippines SME COMPETE Project of the Department of Trade and Industry (DTI). The project aims to enhance the local and global competitiveness of small and medium enterprises (SMEs), enabling them to scale up, access wider markets, and generate more employment. The US$1.21-million grant will support robust project design, strong environmental and social safeguards, and coordinated implementation.

3. Philippines Digital Infrastructure Project Scale-up (Phase II) of the Department of Information and Communications Technology (DICT). With US$1.71 million in grant support, the project will expand broadband connectivity in underserved areas, including Western Mindanao and the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM). The funding will cover technical and economic feasibility studies, detailed engineering designs, stakeholder engagement, and institutional capacity building, among other critical preparatory activities.

Together, these GFPP-supported projects advance the Marcos, Jr. administration’s agenda of inclusive growth, climate resilience, and digital transformation — ensuring that strategic investments translate into real economic opportunities for Filipinos.

The phrase, highlighted during the presentation of global tax policy expert and Chief Tax Advisor of Asian Consulting Group (ACG) Mon Abrea, reflects a growing sentiment among taxpayers and investors — that while Filipinos face multiple layers of taxes, the ease of compliance and quality of public services remain below expectations.

More importantly, it points to a deeper issue: The problem is not just how much we tax, but how the system is designed and administered.

Watch Abrea’s presentation here: https://youtu.be/cC5WinAbGFA

Organized by the Anti-Red Tape Authority (ARTA) in collaboration with the Asian Development Bank (ADB), the briefing gathered key government officials, including representatives from the Department of Finance (DOF), Bureau of Internal Revenue (BIR), and Bureau of Customs (BOC), to advance fiscal compliance, transparency, and seamless government processes.

The event was attended by members of the diplomatic corps, foreign chambers of commerce, industry leaders, and policymakers — reflecting strong public-private collaboration in improving the country’s business environment.

A system that burdens growth

The Philippines continues to face governance and competitiveness challenges. With a Corruption Perceptions Index (CPI) score of 32/100, investor confidence remains constrained, while businesses deal with: complex and overlapping tax rules, high compliance costs, frequent audits and discretionary enforcement, and delays in VAT refunds and approvals.

The result is a system that is heavy on compliance, but light on efficiency and service delivery. This imbalance discourages investment, weakens voluntary compliance, and ultimately limits revenue potential.

While reforms have improved ease of doing business, ease of paying taxes remains a key bottleneck.

Globally competitive economies focus not only on tax rates but on predictability, transparency, and efficiency. Countries such as Singapore, Vietnam, and Indonesia have invested heavily in digitalization and streamlined systems to attract investors.

For the Philippines, improving competitiveness requires modernizing tax administration — not just adjusting tax policy.

From red tape to red carpet

At the EODB briefing, government leaders emphasized that ease of doing business is ultimately about building trust — between the government, taxpayers, and investors.

Transforming the Philippines into an investment destination requires moving from red tape to red carpet.

This means reducing discretion, simplifying processes, and making compliance easier and more predictable.

A comprehensive reform agenda for competitiveness was presented to align the Philippines with global standards:

• AI-driven, risk-based audit to target large-scale tax evasion instead of burdening MSMEs
• Adoption of the OECD Global Minimum Tax to capture fair revenues from multinational enterprises
• Reducing VAT from 12% to 10%, while strengthening enforcement to broaden the base
• Increasing income tax exemptions to provide relief to workers
• Lifting bank secrecy for tax enforcement to improve transparency
• Imposing a recovery tax on unexplained wealth to deter corruption

At the institutional level, a more structural reform is proposed: The creation of a National Revenue Authority, integrating tax and customs systems to improve efficiency, data sharing, and accountability.

Taking the conversation global

These reforms are part of a broader effort to position the Philippines as a competitive investment destination.

On February 26, 2026, the Asian Consulting Group (ACG) will launch the 2026 International Tax and Investment Roadshow, covering key cities across Asia, the Middle East, Europe, North America, and Australia.

Alongside it is the launch of the book: WHY INVEST IN THE PHILIPPINES? — CREATE MORE Edition: A practical guide for global investors, bringing together insights from economic managers, ambassadors, and industry leaders.

The Philippines has strong economic fundamentals — but unlocking its full potential requires restoring trust in its institutions.

Tax reform is not just about raising revenues. It is about creating a system that is fair, efficient, and predictable. Because in today’s global economy, countries do not compete on tax rates alone. They compete on trust.

And until taxpayers feel that they are served as much as they are taxed, the Philippines will remain overtaxed but underserved.

To invite Mr. Abrea for interviews or briefings, email consult@acg.ph.

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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.