In an open letter, tax expert Mon Abrea urges President Ferdinand Marcos Jr. to overhaul the Philippine tax system beyond just abolishing the travel tax. The letter highlights that Filipinos pay multiple taxes but receive inadequate public services and economic opportunities. It calls for comprehensive reforms to restore trust in government.
Published on February 16, 2026, the open letter by Mon Abrea, founder of Asian Consulting Group, appears in Rappler. Abrea writes that Filipinos endure multiple layers of taxes, including income tax, VAT, excise taxes, and various transaction taxes, yet face inadequate public services, high living costs, and limited economic opportunities.
He praises the administration's prioritization of abolishing the travel tax, noting it shows the government is listening to citizens' burdens. However, he argues this is insufficient. "Do not just remove one tax. Let’s fix the system," the letter states.
The letter points to fragmented revenue collection between the Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC), leading to inefficiency, high compliance costs, discretionary enforcement, and corruption risks. The Philippines' Corruption Perceptions Index (CPI) score stands at 32/100, trailing ASEAN neighbors like Singapore and Malaysia.
Abrea proposes actions: first, ease the burden on Filipinos by abolishing the travel tax, reducing VAT from 12% to 10%, and raising income tax exemption thresholds. Second, implement the OECD Global Minimum Tax to collect over ₱50 billion annually from multinational enterprises without increasing local taxpayers' loads. Third, establish a National Revenue Authority (NRA) to integrate BIR and BOC, an idea supported by former President Gloria Macapagal Arroyo. This would enable AI-driven, risk-based audits and enhance transparency.
Ultimately, Abrea emphasizes that tax reform goes beyond revenue; it involves restoring trust, strengthening governance, and securing the Philippines' future. An Ask Me Anything session with Abrea is scheduled for February 17 at 3 p.m.
