Press Release
September 11, 2009

DBCC proposes tax raise to cut the projected 2010 budget deficit
NO ONE IS HIS RIGHT MIND WOULD TAX POOR PEOPLE MORE - ANGARA

Senator Edgardo J. Angara opposed the Development Budget Coordination Council's (DBCC) proposal to raise taxes in order to cut the projected 2010 budget deficit, estimated by Palace officials to reach P233.4 billion, or 2.8 percent of Gross Domestic Product (GDP).

Last Wednesday during the second DBCC budget hearing Senate officials and members of the DBCC argued over the tax plan, Angara who chairs the Senate Committee on Finance scrutinized the budget bill and rejected at once the imposition of additional taxes on ordinary citizens.

Angara added, "It is the government's problem to face and not the people, it should never be a burden that can be passed to the public. I do not think anyone in his right mind would support taxing the poor some more."

He noted that the "wide discretion given to tax collectors" does not help the government improve the present tax system. "Unless this is improved, it will be a sure prescription for the collapse of the economic recovery effort."

On "text tax" Angara explained that the proposed law prohibits the Telecommunication companies from passing the burden to the consumers and that the public shouldn't be worried specially since they are public utilities franchise by the government they are bound to follow the law.

"They are gaining so much profit. They can afford to pay advertisements and support promos. So they should also share a few centavos so that the government could implement more social services," Angara further explained.

Angara who urge for more prioritization on social services, agriculture, education and health said that the projected P75-billion annual revenue from the measure could greatly help improve public services. He emphasized the need to improve tax collection effort should be the focus and not how it can be solved and passed on to others

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