MANILA, Philippines — The remaining two years of the Marcos administration should be remembered not for political battles but for institutional reforms that strengthen governance, restore public trust, and secure the Philippines’ long-term competitiveness, according to global tax policy expert Mon Abrea.
Abrea said the country has already laid important foundations through investment reforms, infrastructure development, and economic liberalization. The challenge now is execution.
“The next two years should be about building institutions that outlast any administration. Countries become globally competitive not because of politics, but because they have credible institutions, transparent governance, efficient public service, and predictable policies.”
He outlined five strategic priorities that he believes should guide both the Executive and Congress until 2028.
First, modernize the country’s economic institutions, particularly the Bureau of Internal Revenue (BIR), Bureau of Customs (BOC), and the Philippine Economic Zone Authority (PEZA), by moving beyond digitalization toward AI-enabled revenue administration, risk-based enforcement, integrated government data, faster regulatory processes, and world-class investor services.
Second, empower the Filipino middle class by increasing take-home pay through responsible tax reform instead of imposing new taxes on consumers already burdened by inflation.
“The Filipino middle class remains overtaxed and underserved. Economic growth becomes more inclusive when hardworking Filipinos keep more of what they earn.”
Third, simplify the tax system for MSMEs, professionals, freelancers, online sellers, startups, and family businesses to encourage voluntary compliance, entrepreneurship, and business expansion while reducing the cost of compliance.
Fourth, maximize the country’s investment momentum by successfully concluding ongoing trade negotiations with the European Union and Canada and fully implementing the Strategic Investment Priority Plan (SIPP), the Luzon Economic Corridor, and other reforms that position the Philippines as a preferred destination for advanced manufacturing, technology, and high-value investments.
He also announced that Asian Consulting Group (ACGlobal) will undertake an investment mission to South Korea and Japan to strengthen strategic partnerships, attract high-quality foreign direct investments, promote technology transfer, deepen economic cooperation, and showcase the Philippines as one of Asia’s most competitive investment destinations.
“Global investors are looking beyond fiscal incentives. They value policy certainty, regulatory efficiency, transparent governance, the rule of law, speed of execution, and institutional credibility. These are the competitive advantages the Philippines must continue to strengthen.”
Finally, Abrea called for what he described as the country’s most urgent structural reform: restoring accountability in public finance.
“Corruption remains the Philippines’ biggest revenue loss, while bureaucracy continues to be the biggest cost of doing business. We do not have a taxation problem as much as we have a governance problem.”
Instead of introducing additional taxes, Abrea urged President Ferdinand R. Marcos Jr. to create a high-level Interagency Task Force on Revenue Integrity and Public Accountability composed of the Department of Finance, BIR, Bureau of Customs, Anti-Money Laundering Council, Ombudsman, Commission on Audit, Department of Justice, Civil Service Commission, Securities and Exchange Commission, Bangko Sentral ng Pilipinas, and other relevant agencies.
The task force, he said, should identify and investigate unexplained wealth accumulated by public officials and politically exposed persons and, where supported by evidence and due process, expedite the filing of tax evasion, plunder, graft and corruption, money laundering, and related criminal cases.
“Every peso hidden through corruption represents taxes that honest Filipinos should never have had to pay. Recovering these revenues is fairer and economically wiser than asking compliant taxpayers to shoulder additional burdens.”
He added that swift enforcement would not only recover revenues but also strengthen confidence in government.
“The strongest deterrent against corruption is not simply harsher penalties, but the certainty that investigations are impartial, prosecutions are timely, and justice is served. Those convicted under our laws should face the full consequences, including perpetual disqualification from public office where provided by law.”
Abrea also urged policymakers to eliminate confidential funds that lack adequate transparency, unnecessary budget insertions, ghost projects, and other forms of wasteful spending, emphasizing that public funds must be allocated based on measurable outcomes and national priorities.
“Taxpayers deserve to know where every peso goes. Fiscal responsibility begins with transparency.”
Reflecting on recent developments, Abrea said the Philippines has every reason to be optimistic.
“As we celebrate Alex Eala’s historic WTA title—the first ever by a Filipino—we are reminded that our people can compete with the very best in the world. The same excellence should define our public institutions.”
He added that the country’s improving investment profile, together with ongoing negotiations for deeper economic partnerships with the European Union and Canada, presents an opportunity to reinforce policy certainty, strengthen institutions, and build lasting investor confidence.
“Our politics should unite around reforms that matter—better healthcare, world-class education, efficient government services, modern transportation, resilient infrastructure, quality jobs, and a competitive economy. These are the reforms that improve everyday life.”
Abrea concluded that history will remember administrations not by the intensity of political debates but by the institutions they strengthened and the trust they restored.
“The Philippines deserves first-world institutions that deliver first-world public services. That should be the defining legacy of the next two years.”
