Press Release
June 1, 2017

Transcript of Ambush Interview of Senate President Aquilino Pimentel III

On the proposed tax reform bill

SPKP: Reform the compensation income tax bracket rates. Kailangan na po yun kasi lahat ng compensation income earners ay magkikita na po dun sa highest bracket. Even the richest man in the Philippines kasama na niya si middle class income earner dun sa highest bracket. So its now time to reform that. Ang binabantayan lang natin for example ay yung excise taxes like sa diesel. Kailangan din na nagttake advantage na even yung mga mayayaman sa low tax on the diesel. So kailangan na pong iupdate yung mga tax. The key here is to calibrate not to shock the entire system na ang laking jump nung cost or nung price of diesel. Luxury goods, okay na pong i-tax yun. If you can afford so much luxury, you should pay your dues to this government which allowed you to enjoy luxury goods.

Q: Ano yung rate ng excise tax that is acceptable?

SPKP: Paguusapan pa po yun basta the proposal is six pesos per liter. But there are proposals na you can achieve the six pesos by three, two, one. Three muna then two plus one so six din ang total nun. There are many strategies in tax law which we could implement.

On the hope that Congress will carry the Department of Finance's proposed tax reform bill

SPKP: That is the hope. That is what they want because that is what they submitted. If you submit something to Congress, you hope that is one passed. But of course they are also realistic, we have a system, give and take. Dumadaan sa proceso yun and that the will of the representatives of the people. You accept the will of the representatives of the people.

On the affected industries once the proposed tax reform bill is approved

SPKP: Hindi lang BPO. Maraming mga current exemptions which we are lifting or erasing. So marami ring umaangal. But you know, if you want a modern country, a modern society, a fairer society, we really have to have funds to improve our society. May angal talaga. Pag may change talaga, you are enjoying the certain benefit and that is being withdrawn. You will expect that there will be complaints. If they see that this is necessary and put to good use, of course reasonable. It will not kill your business or kill your industry then we believe that we can find an acceptable solution.

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