But some of the country's biggest companies, such as beer giant San Miguel Corp. or Fortune Tobacco Inc., are optimistic that spending will continue to grow. That would boost tax revenue, but bigger gains will come from the continuing growth of the Philippines' export-led manufacturing sector, Mr. Cojuangco says. However, this activity isn't creating enough jobs to stop hundreds of thousands of Filipinos from leaving the country each year. An estimated four million Filipinos work overseas as seamen, engineers, computer technicians, nurses and, especially, domestic helpers. For the government, the real money is in luring more taxpayers onto the rolls, but actually persuading people to sign up is easier said than done.
Policy makers say a new approach is needed.
Enter Mr. Poe. A close friend of erstwhile showbiz buddy Mr. Estrada, as well as the chief of the revenue department, Mr. Poe is slated to star in a television commercial encouraging prompt and complete payment of taxes. Efforts to improve the government's tax take have been undermined by another failed attempt to win a long-standing tax case against tycoon Lucio Tan. Somehow, the Department of Justice missed a deadline to file an appeal against an earlier court decision to exonerate Mr. Tan, one of the Philippines' wealthiest men and the owner of a business empire spanning tobacco, brewing, banking and airlines. Still, Mr. Pardo and Budget Secretary Benjamin Diokno are looking at new ways to draw more people and businesses into the tax net.