Press Release
June 28, 2010


Senator Edgardo J. Angara said that the P340 Billion budget deficit can be filled up increasing tax collection efforts of the revenue generating agencies in order to stall the creation of new taxes.

"There are many ways to fill our budget deficit, one of which is increasing tax collection efforts. Moreover, we have a borrowing program that is often misunderstood. It is inevitable to borrow so that you can fund development efforts. But what's more important is that this borrowing is placed in the right investment," said Angara, who chairs the Senate Committee on Finance.

He added, "Pursuing infrastructure - building schools, bridges, investing in renewable, these are productive investments that can return what we have borrowed ten times more."

Further, Angara said that stepping up tax collection efforts combined with wise spending could really solve our budget deficit. But still, the Senator said that no administration should bind itself beforehand to not being able to raise revenue through taxes.

"In the event that we must increase taxes, there are tax enhancement measures that can be done without harming the majority of our people. It is wise if we will choose what to tax. For instance, we can increase taxes from alcoholic beverages and cigarettes, things that are not necessities because those are even harmful to our health," said Angara.

"Taxation is a sustainable source of revenue for the country. The important thing to remember is to keep stimulating the economy and maintain a level of growth, in order to create jobs and prevent more people from sinking into poverty," he added.

Meanwhile, Angara urged the incoming administration to prioritize infrastructure and basic social services, and adopt reform measures that will spur economic growth.

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