The Asian Development Bank (ADB) said improving tax processes and compliance remains critical to boosting ease of doing business (EoDB).
Governments face increasing pressure to strengthen economic competitiveness and improve their attractiveness to investors, ADB Country Director Andrew Jeffries said at a briefing Wednesday.
“Fiscal and tax compliance are regulatory requirements for every business—you know the saying, death and taxes are the only certainties. Therefore, a central element of any ease of (doing) business is … improving these processes,” he said.
Mr. Jeffries, speaking at the 2026 Economic-EoDB Briefing of the Anti–Red Tape Authority (ARTA), said improving such systems is a “key reform priority.”
The Philippines ranked 53rd out of 101 economies in the World Bank’s 2025 Business-Ready (B-Ready) report, which measures the state of the business environment.
In taxation, the Philippines scored 60.46 out of 100. The scores break down into 67.86 for the quality of tax regulation, 52.08 for public services for corporate taxpayers, and 61.44 for the operational efficiency of the tax system.
However, the ADB official said private firms continue to face hurdles.
“We also hear the feedback of the private sector that many challenges remain, including the need for greater digitalization, transparency, and timeliness around the processes for tax filings, assessments, and refunds,” he added.
Earlier this month, the BIR resumed issuing letters of authority and mission orders after two months of suspension amid allegations of misuse.
”The idea of replacing red tape with red carpet represents a shift from barriers to a welcoming approach that makes processes easier and more accessible,” ARTA Secretary Ernesto V. Perez said.
“Together, we aim to create a system that works efficiently and responds to the needs of the people,” he added.
Meanwhile, the Department of Finance (DoF) said ease of doing business is a “constant commitment in building trust with investors and the public.”
”As we continuously implement reforms, we are ultimately creating an environment that will be attractive to business and investment,” Chief Privatization Officer Michael Peter A. Alejandro said on behalf of Finance Secretary Frederick D. Go.
European Chamber of Commerce of the Philippines (ECCP) President Paulo Duarte said the B-Ready survey showed progress, but the reality is different when it comes to BIR audits.
“The European Chamber of Commerce (has) 930 members; they might put the BIR tax audits as one of the most painful elements (of doing business in the Philippines),” he said in a panel discussion.
Mr. Duarte also noted that processes are long and unclear, with legislative loopholes and “ending with these so-called negotiations in the end that nobody understands.”
“We see the reforms that the administration is pursuing, especially on the BIR… But we still have a way to go to make (the reforms) tangible,” he said.
Former Makati Business Club Executive Director Guillermo M. Luz said the BIR remains not only complicated to deal with but also inequitable, with smaller and legitimate businesses bearing the brunt.
“When we take a look at the case like the flood control scandal, we’re shocked at the amounts of corruption that never surfaced. The BIR has never been mentioned as finding any of these non-tax payments by the contractors,” he said.
Mr. Luz added that restoring trust requires greater transparency and seamless processes, alongside building confidence that the tax system works fairly for all, rather than favoring a few while penalizing many.
BIR Deputy Commissioner Marissa O. Cabreros said transparency should come from not just from the BIR side, but also from taxpayers.
“The BIR is steadfast in (monitoring) compliance … by our revenue officers,” she said.
Ms. Cabreros also urged taxpayers to embrace transparency to improve compliance, saying this would strengthen the audit selection process. – Aubrey Rose A. Inosante
