“Naturally, we need compensatory measures to offset the revenue loss from income tax reform,” Mr. Quimbo said in a Viber message. “This can preserve revenues while making the tax system more progressive.” He said the design of the proposed excise tax increases would be crucial. Mr. Rivera noted that proposals to increase excise taxes on sweetened beverages and single-use plastics have already been part of the government’s broader fiscal reform agenda. Despite concerns over their distributional impact, he said the overall package could still benefit taxpayers if the income tax relief meaningfully boosts workers’ take-home pay and the excise tax increases are implemented in a targeted and gradual manner.