The Senate Committee on Ways and Means has started “consultations” on the multibillion-peso tax-reform package submitted to Congress by the Duterte administration, even as it awaits passage of the money measure by the House of Representatives.
This developed as Sen. Juan Edgardo M. Angara, committee chairman, confirmed that the panel is also working on adjustments in income-tax brackets to make them more realistic, as these were drawn up 20 years ago. “We already began consulting sectors as early as last year,” Angara said, when asked by BusinessMirror if the panel was ready to conduct parallel hearings on the Palace tax plan to broaden the value-added tax base and raise fuel taxes, even as it provides downward adjustments in personal income taxes, among others.
The Senate, however, needs to wait for the final House vote approving the tax package crafted by the Department of Finance before senators can pass their version of the tax bill, in compliance with the rule that all money measures must emanate from the House of Representatives.
Senators earlier voiced misgivings over the Palace-backed plan to raise the tax on fuel products, as it is likely to trigger protests over the resulting spike in prices of goods and transportation fares.
The senators noted that among those certain to be impacted by the higher excise tax on fuel are the public transportation sector and truckers that ferry goods from producers to the market.
But Senate Minority Leader Ralph G. Recto prefers to wait for the House-approved version of the higher tax bill.
Sen. Recto was among the first to register opposition to the Palace fuel tax-hike plan when it was initially floated for public discussion, noting there was “no fiscal crisis” to justify imposition of higher taxes that will eventually be passed on to commuters and consumers.
Recto said that, instead of burdening these sectors with the fuel tax-hike scheme, Duterte administration officials should first curb smuggling and improve tax-collection efficiency.
Moreover, the Senate Minority Leader suggested that the administration, before imposing higher taxes, should spend the budget first—the government has underspent the past few years—to spur economic growth, noting that the government earns more revenue when the economy is growing.
Other senators also raised misgivings over the administration’s tax-hike scheme, but said they would first study the Palace proposal.
Sen. Francis G. Escudero earlier indicated that when the Senate panel opens hearings on the Palace tax-hike plan, he intends to ask Duterte administration officials to first provide proof they were able to collect existing taxes and have spent the collected funds, recalling its track record on “low absorptive capacity.”
1 comment
Reading the comments of the senators and talking about spending more due to under spending, increasing tax collection efficiency and curbing smuggling only shows how totally inept, corrupt, and stupid BS Aquino, his KKK, and his minions were the last 6 years.