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BusinessMirror.com.ph Home Top News Tax-reform measures, yes; no new taxes yet–Palace

Tax-reform measures, yes; no new taxes yet–Palace

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MALACAÑANG gave new assurances on Monday that imposing new tax measures would continue to be a last resort for the Aquino administration. But it said it would pursue tax-reform measures, such as restructuring excise taxes on alcohol and tobacco products, to improve revenue collections.

Responding to questions, Presidential Spokesman Edwin Lacierda said in a news briefing that the administration’s position against imposing new tax measures remained.

“As far as I know, we are going to use increase in taxes as a last resort. Right now, we’re still continuing to make sure that the leakages and the loopholes are being plugged.

“We don’t want to add additional burden if we can plug the loopholes and leakages in the tax collection system,” he said.

Lacierda said, however, that the pursuit of tax reforms “is always under way” by seeking to amend existing measures.

“We’re rationalizing the sin taxes. We’re also rationalizing the fiscal incentives to bring about greater collection in the tax.  As to new taxes, that’s something we have to discuss,” Lacierda said.

He did not say what would compel the government to impose new tax measures; this would have to be determined by the economic managers, he said.

The President earlier said the restructuring of sin taxes, which is estimated to generate P60 billion in additional revenues annually, was in his legislative agenda this year.  Lacierda also said the administration plans to weather another expected tough year through improved domestic spending, among other things.

“We’ve anticipated the difficulties brought about by the external conditions of the global economy and, hence, the reason why we are emphasizing domestic spending and further improving the economy from within,” Lacierda said.

 


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