Political news , opinions and views for 2010 Presidential election

February 16, 2010

‘Presidentiables’ divided on new taxes

from Business World
http://www.bworldonline.com/main/content.php?id=6363

WITH LACKLUSTER REVENUES perennially tagged as holding back the country’s development, five of seven presidential hopefuls attending a forum yesterday rejected the imposition of new taxes.

Present at the 13th annual Foreign Correspondents Association of the Philippines’ Prospects Forum were Sen. Benigno Simeon "Noynoy" C. Aquino III, Sen. Ana Consuelo "Jamby" A. S. Madrigal, Nicanor "Nicky" Jesus P. Perlas, Eduardo "Bro. Eddie" C. Villanueva, Olongapo City councilor John Carlos "JC" G. de los Reyes, former Defense Secretary Gilberto C. Teodoro, Jr., and Sen. Richard J. Gordon.

The absent ’presidentiables’, meanwhile, were Sen. Manuel B. Villar, Jr., former President Joseph Estrada, and Vitaliano Acosta.

Mr. Aquino, statistically tied at the top with Mr. Villar, reiterated his position that "it is not right to raise tax rates or impose new taxes when the collection agencies are not collecting properly."

This was echoed by Messrs. Perlas and Villanueva.

Ms. Madrigal, for her part, said she would rather seek to revert the VAT to 10% from the current 12%.

Mr. de los Reyes said he would recommend a lower VAT on food, electricity and water, and lower income tax on workers who provide basic services such as teachers, soldiers and nurses.

New taxes, meanwhile, were supported by Mr. Teodoro, the administration bet, and Mr. Gordon.

"We have to put into context the potential damage of El Niño to our agriculture sector and see a scenario where there is a possibility of loss of income to farmers and an upsurge of food prices. In this light, seeing as we cannot raise the income and corporate taxes as we already have the highest rates in the region, I would go for the rationalization of excise tax on some products and the expansion of the E-VAT (expanded value-added tax)," Mr. Teodoro said.

Mr. Gordon, for his part, said: "It is difficult not to raise taxes as we have no more room for [a higher] budget deficit I would raise taxes on text messaging and get the needed funds so that we can invest on education."

Bert Hofman, World Bank country director, said in an opening statement at the same event that additional funds need not come from new taxes.

"We do not necessarily mean new taxes to shore up revenues but there is such a thing as adjusting excise taxes to inflation and expanding the VAT tax base. Those do not equate to new taxes," he said.

Mr. Villar last week told a Makati Business Club forum that he could not promise no new taxes. Mr. Estrada, meanwhile, has not issued a position on the issue.

Mr. Hofman, meanwhile, said the next president should address bottlenecks such as insufficient infrastructure, low investments in human resources, and good governance.

"Providing people with better if not equal opportunities by having a level playing field in markets, by providing people with the education needed to succeed in life, by providing equal protection under the law, could be considered as a growth agenda," he said.

The presidential aspirants responded with different policy approaches.

Mr. Teodoro is pushing universal mandatory health care coverage, a national student loan program and continuation of major infrastructure projects.

Mr. Gordon vowed to set up round-the-clock public service, ensure energy sufficiency, and provide domestic tourism packages.

Mr. Aquino promised a resolution of pending corruption cases such as an alleged 2004 poll anomaly involving President Gloria Macapagal-Arroyo and the scrapped National Broadband Network by convening a Judiciary, Executive and Legislative Advisory and Consultative Council.

Mr. Villanueva is seeking an overhaul of the justice system; Ms. Madrigal wants an audit of the Government Security and Insurance System, Social Security System, the military’s Retirement Savings and Benefits System, and the Overseas Workers Welfare Administration fund, plus the suspension of anomalous mining permits; while Mr. de los Reyes is pushing a total gun ban for all except law enforcers.

Filipinos will troop to the polls nationwide on May 10 to choose Mrs. Arroyo’s successor. -- JFSV

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