Chiz: Do Not Burden Filipinos with New and Higher Taxes
Senatorial aspirant and Sorsogon Gov. Chiz Escudero said the government should not resort to imposing new taxes to pay for the Philippines’ burgeoning debts, as proposed by the Department of Finance (DoF).
“It’s true that the government needs increased revenue but I do not believe this is the right time to impose new taxes or tax hikes because we are still reeling from the impact of the pandemic. Filipinos are only just beginning to regain their health and livelihoods—will the government make recovery harder for us than it already is?” Escudero said.
“Hindi pa nga tayo nakakatayo, ibabaon na naman ba natin ang ating sarili sa mga bagong bayarin?” he said.
To raise government revenue for debt payments, the DoF said it is studying the imposition of new taxes; removal of all exemptions to the 12% value-added tax (VAT) payment; and an increase in excise taxes on cigarettes, alcoholic drinks, and sugar beverages.
The Philippines ended 2021 with an outstanding debt of P11.73 trillion or a 19.7% increase from 2020. This translates to a 60.5% ratio of public debt to gross domestic product, representing a 16-year high.
“Kailangan natin magbayad ng utang pero huwag naman natin kuhain sa mga seniors, PWDs, mga naghihingalong exporters at iba pang mga VAT-exempt ang pambayad ng utang ng gobyerno. Mag-isip tayo ng paraan para matugunan ang ating responsibilidad ng hindi pinapahirapan ang mga tao,” Escudero said.
Some 10 million senior citizens and 1.4 million persons with disability (PWDs) are entitled to VAT exemption. In December 2021, the Bureau of Internal Revenue also exempted from VAT payment all registered exporters that purchase goods and services from local suppliers.
Instead of raising taxes, Escudero said the government should consider selling its assets and maximizing public-private partnerships (PPP) to fund infrastructure development. There are 63 PPP projects in the pipeline now, but this could be expanded by the next administration, he said.
“There are ways to free up fiscal space for debt payments, instead of immediately looking at new taxes. PPP is the way to go. For the long term, the government should exert more effort into eliminating corruption, which is bleeding us P700 billion annually. That’s enough to build 1.4 million housing units,” Escudero said, citing data from the Deputy Ombudsman. #
