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  • Poor tax-income
    ratio alarms expert
     
    By Cai U. Ordinario
    Reporter

    AS almost everyone is saying, central to all government effort is efficient tax collection, and National Statistical Coordination Board Secretary-General Romulo Virola added his voice on Tuesday by asserting that if the government is to help cushion the adverse impact of rising food and fuel costs on poor Filipinos, improving tax collection is top priority.

    He cited data to indicate that many Filipinos do not pay their tax correctly. “Overall, the Philippines had a tax-income ratio of only 1.8 percent in 2003, which seems very small, an indication that we as a people possibly do not pay enough taxes.” 

    At present, said Virola in his latest online column “Statistically Speaking,” the “rice-price crisis and the unrelenting surge in oil prices pose big threats to the sustainability of past gains. What does the future hold for us? The efficiency and effectiveness of tax collection, the honesty and sense of responsibility of the taxpayers, and the social conscience of tax evaders will surely all be a factor.”

    Virola said the lowest tax-income ratio in 2003 came from the regions of the Autonomous Region in Muslim Mindanao, Davao and Soccsksargen. The five provinces with the lowest tax-income ratio are Lanao del Sur, Tawi-Tawi, Sarangani, Davao Oriental and Sulu.

    He also said that based on the 2003 Family Income and Expenditure Survey (FIES), no group of workers paid more than 5 percent of their income in taxes, with the tax-income ratio ranging from 0.7 percent among farmers, forestry workers and fishermen to 4.3 percent among professionals. “Officials of government and special-interest organizations, corporate executives, etc., pay taxes equivalent to 2.5 percent of their total income. But isn’t the 4.3-percent tax paid by professionals too low? In fact, in Region XII [Soccsksargen], the professionals paid only 1.8-percent tax, even lower than the rate paid by clerks, technicians and associate professionals and the group of service workers, shop and market sales workers,” said Virola.

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