It simplified the tax system, increased tax rates on automobiles, petroleum, and tobacco products; expanded the value-added tax base; introduced excise tax on sugar-sweetened beverages; and lowered the estate and donor’s tax. With the new tax system, the incoming administration will be in a better position to face the challenges of the post-pandemic economy. The Philippines entered the pandemic in a position of strength.
Its hefty external accounts and gross international reserves acted as a buffer during the pandemic. In line with the movement of other emerging market currencies amid the Ukraine-Russia conflict, the peso depreciated but only by 2.4 percent as of May 23 from its end-2021 level.