PHNO-HL: PINOYS SHOULD BRACE FOR NEW, HIGHER TAXES


 



PINOYS SHOULD BRACE FOR NEW, HIGHER TAXES

MANILA, APRIL 27, 2011 (BULLETIN) By GENALYN D. KABILING — Filipinos should brace for the prospects of new or higher taxes under the present administration after President Aquino apparently took back an earlier campaign promise not to impose new taxes during his term.

The "no new taxes" policy declared by the President during the presidential campaign applies only this year, Malacañang said Tuesday.

While the public can be assured of no additional taxes until the end of the year, Presidential Spokesman Edwin Lacierda said that the imposition of new taxes or higher tax rates will depend on the country's fiscal position in the remainder of the President's term.

"I'm not sure if the 'no new taxes' policy was for the entire six years (of President Aquino's term). That was not the promise made. What we are very clear about is there will be no taxes this year," Lacierda said in a Palace news conference.

"That's my understanding. We are going through it on a year-to-year basis," Lacierda added of the imposition of additional taxes during Aquino's tenure.

In the campaign road to the presidency last year, then Senator Benigno Aquino III promised he would not impose new taxes or increase tax rates if elected president. Aquino, in seeking the votes of Makati Business Club last year, instead vowed he would focus on the campaign against tax evasion and smuggling.

Lacierda, however, explained that the President may reconsider raising taxes in the coming years depending on advice of his economic managers and the "fiscal condition" of the country.

"Right now we are doing okay, so there are no plans right now," he said. "We have good numbers on revenues and deficit," he added.

Lacierda declined to comment on the bills seeking higher taxes on alcohol and tobacco supposedly meant to curb the government's huge budget deficit until the Palace has seen the details. He admitted that it "sounds good" to simplify the multi-tiered system of sin taxes but "we haven't seen the bill yet."

He said they would let Finance Secretary Cesar Purisima and Budget Secretary Florencio Abad to comment on the proposed legislation on higher sin taxes.

EARLIER NEWS REPORT DURING ELECTION CAMPAIGN DURING ARROYO ADMIN

Palace hits Noynoy over no-new-tax pledge abs-cbnNEWS.com Posted at 01/22/2010 4:49 PM | Updated as of 01/22/2010 9:03 PM

MANILA, Philippines - Malacañang chided presidential candidate Sen. Benigno "Noynoy" Aquino III of the Liberal Party over the promises he made to the business community on Thursday, which include refraining from imposing new taxes and increasing tax rates.

Gary Olivar, Palace deputy presidential spokesperson, said that what Aquino did was "unfair" to the public since these may only be empty promises once he gets elected.

He compared Aquino's no-new-tax pledge to what former United States President George H.W. Bush did when he accepted his nomination for the 1988 presidential elections.

His statement, "Read my lips: No new taxes", was said to have helped Bush greatly in winning the 1988 presidential elections. But once he took the highest position, Bush raised taxes as a way to curb the US budget deficit.

On Thursday, Aquino told members of the Makati Business Club that he would not impose new taxes or raise tax rates if elected president. He also promised to pursue the rationalization of fiscal incentives as part of efforts to plug revenue leaks and lower the budget deficit.

In an attempt to court the business community's support, he stressed that lower taxes is part of his "vision to transform our country."

The top corporate tax rate is 30%. Other taxes include a value-added tax (VAT), a real property tax, and an inheritance tax. In the most recent year, overall revenue as a percentage of GDP was 14%.

Despite political pressure, authorities did not repeal the VAT on petroleum products during the most recent economic slowdown. -- Report from Willard Cheng, ABS-CBN News

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Chief News Editor: Sol Jose Vanzi
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