Finance Secretary Ralph G. Recto has ordered the creation of a multi-sectoral working group led by the Department of Finance (DOF) with private sector partners to address tax and non-tax concerns through digital solutions that will strengthen the country’s investment climate and generate more jobs for Filipinos.
The directive came during a dialogue with the Makati Business Club (MBC) on October 14, 2025, where business leaders discussed key policy concerns and offered insights to help strengthen the Marcos, Jr. administration’s efforts in improving the country’s investment environment.
Among the companies present were Mondelez Philippines, Unilever, SGV & Co., PepsiCo Philippines, the American Chamber of Commerce of the Philippines (AmCham), Texas Instruments, and Shopee.
“We want to support the government in its quest to make this a very good business environment and investment destination. That’s our overall aim. We’re here to support you,” MBC Executive Director Rafael Ongpin said.
“We’re here because this government has been very open and very collaborative, and we really see the value of that. Thank you very much for listening to us,” he added.
Among the key issues raised was the implementation of Revenue Memorandum Circular (RMC) No. 5-2024, which clarifies the taxation of cross-border services involving non-resident foreign corporations.
Secretary Recto welcomed the MBC’s inputs and affirmed the government’s commitment to working with them in reviewing existing tax circulars and identifying potential digital solutions that will make the tax assessment more transparent and efficient for stakeholders.
BIR Commissioner Romeo D. Lumagui, Jr. also shed light on the issues raised on the said RMC, and agreed with Secretary Recto’s proposal for the MBC and the BIR to collaborate on proposed amendments to clarify key provisions.
Further, the Finance Chief assured business leaders that the government is intensifying its digitalization efforts across the board to eliminate corruption and increase efficiency in the delivery of public services.
He encouraged the private sector’s participation in accelerating the DOF’s digital transformation program, particularly in the Bureau of Internal Revenue (BIR), the Bureau of Customs (BOC), and the Bureau of the Treasury (BTr).
“Whatever support you think we can provide––inputs, technology, we’d be more than happy to do that,” MBC Chairman Edgar Chua said.
Secretary Recto thanked industry leaders for their collaboration, underscoring the private sector’s critical role in sustaining growth and job creation.
“The government is only 20% or 25% of the economy––you’re 75%. Today, you have more than 50.1 million people working, with more than 32 million in the private sector,” he said.
Also present during the meeting were MBC Trustee Cosette Canilao and Australian Embassy in the Philippines Economic Counselor Luke Villiers.
Joining Secretary Recto were DOF Chief of Staff and Undersecretary Maria Luwalhati Dorotan Tiuseco, Privatization and Partnerships Group (PPG) Undersecretary Catherine Fong, Corporate Sector and Strategic Infrastructure Group (CSSIG) Undersecretary Rolando Tungpalan, Revenue Operations Group (ROG) Undersecretary Charlito Mendoza, and ROG Assistant Secretary Euvimil Asuncion.
