Press Release
August 26, 2008

Loren calls for revival of joint
legislative tax commission

Senator Loren today batted for the creation of a commission that will study, evaluate, and review tax measures and proposals to avoid delays in the enactment and ensure efficiency in the implementation.

To be called Joint Legislative Tax Commission (JLTC), Legarda said the proposal as embodied in her Senate Bill No. 2485 is aimed at minimizing the delays associated with legislation and resolving differing views of various parties concerned in the system of taxation.

This JLT Commission, Legarda explained, will be the venue for efficient deliberations to ensure that the different concerns are addressed and evaluated before a rationalized measure is undertaken by the respective committees in Congress.

The mechanism, according to Legarda, was first conceived and put in use in the 1970s.

"Because of the surging oil prices and the resulting rise in the inflation rate, calls to revise the taxation system are pitched left and right by government and civil society alike. Proposals are brought forward in the guise of different schemes, all seeking to alleviate the plight of the common Juan and Juana dela Cruz who struggle to make ends meet amidst the rising cost of living," she said.

Legarda noted that there seems to be no concerted effort from all stakeholders, i.e. the government, legislative and executive, the business community, and the citizenry.

"While legislation is the means to put in place structural reforms, particularly in the tax system, it is encumbered and protracted by incongruous viewpoints," she added.

Legarda said the creation of the commission is but imperative, to iron out the discord among the policy stakeholders which has remained slow and efficient.

"It's time we adopted a mechanism to speed up the reforms necessary not just to help the common Filipino, but to help the country progress as well through the enhancement of the country's fiscal strength," she said.

The JLT Commission will practically serve as a center that studies, evaluates and reviews the tax measures with the aid of comprehensive studies and researches, the developed tax reform package would be assured of credibility and reliability.

"This measure will in effect depoliticize the process of tax-legislation and ensure continuity of the enforced tax system in each administration," she said.

The Commission, Legarda added, will expedite the passage of tax measures. It will be composed of representatives from the Executive Department, the House of Representatives and the Senate. It shall likewise be supported by a technical staff as well as an initial fund of P50 million pesos to carry out its operations.

In carrying out its functions, the Tax Commission shall be authorized to secure from any department, bureau, office, agency or instrumentality of Government, such assistance as may be needed, such as the detail of officials or employees, technical and statistical information, the production of records and/ or submission of proposals or plans as it may require.

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