A HOUSE leader on Saturday opposed the proposed tax reform measures being pushed by the Department of Finance and some members of Congress, saying these would only become added burden to Filipino consumers, particularly the poor.
Bayan Muna party-list Rep. Carlos Isagani Zarate was referring to revenue measures such as the excise taxes on oil products, taxes on vanity products, electronics, sugar, salt and even on the drug Viagra.
“Instead of raising more regressive taxes, what should be done is for the revenue collection agencies under the DoF to increase its collection efficiency. These agencies—BIR and BoC—should not rely mainly on indirect consumption taxes like the value-added tax and excise taxes, which would hit the poor the hardest because it is ultimately passed on to consumers regardless of their salaries,” Zarate, chairman of the House committee on natural resources, said.
Zarate said passing on the burden to the poor even more while protecting the interests of the rich and big corporations was very regressive.
He said the government’s revenue collecting agencies such as the BIR and the BoC must be able to meet their target and increase and improve their tax collections.
Citing DoF data, Zarate said in 2012, BIR’s loss in revenues amounted to P400 billion or four percent of the country’s GDP.
On the other hand, also in 2012, the BoC had P200-billion revenue loss as well, Zarate added.
“The inefficiency in revenue collection is glaring. Only if the government is able to collect the P200 billon, the amount would be enough so as not to push anymore for the proposed oil excise tax,” Zarate said.
“We hope that the DOF would listen and follow President Duterte’s instruction last August to lift anti-poor and gender biased taxes and not add more tax burden to the public,” Zarate pointed out.
