The Fiscal Policy Office (FPO) is to ask the Finance Ministry to consider winding down unnecessary measures related to tax waivers and tax deductions, in the wake of a decline in net government revenue as a proportion of GDP, says a ministry source who requested anonymity.
The source said that according to the FPO's report on fiscal risk as of August, net government revenue as a proportion of GDP is expected to continue falling, from 14.6% in fiscal 2021 to 13.3% in fiscal 2026.
The government should keep only necessary tax waivers and tax breaks, as well as seeking ways to broaden the tax base and improve tax collection capacity to boost revenue, the source said.
