The paper evaluates the tax performance of the National Government (NG) during CY 1995-1999. It notes that total national government revenues substantially increased from P361.9 billion in 1995 to P478.2 billion in 1999 posting an average growth of 7.4% annually. The tax effort which registered positive growth from 15.9% in 1995 to 16.3% in 1996 and 1997 started to decline in 1998 and reached a low of 13.7% in 1999. Similarly, the ratio of total tax revenues to GNP declined from 18.5% in 1995 to 18.1% in 1996, went up to 18.6% in 1997, dropped significantly to 16.5% in 1998, and further slipped to 15.2% in 1999. Collection from the corporate income tax is largest among the direct taxes while the license and business taxes (LBT) topped other indirect taxes.
