Senatorial aspirant and Sorsogon Governor Francis "Chiz" Escudero on Wednesday urged the government not to resort to imposing new taxes to pay for the Philippines’ burgeoning debts.
Escudero, a former Senate finance committee chief, made the call in light of the Department of Finance's (DoF) proposal, saying while the government needs higher revenues, raising or imposing new taxes is ill-timed as many Filipinos are still reeling from the impact of the pandemic.
"Filipinos are only just beginning to regain their health and livelihoods—will the government make recovery harder for us than it already is?” Escudero said, in a statement.
“Hindi pa nga tayo nakakatayo, ibabaon na naman ba natin ang ating sarili sa mga bagong bayarin (We haven't recovered yet, but are we going to allow ourselves into deeper debt through new taxes)?” he pointed out.
The DOF, earlier, said it is studying the imposition of new taxes; removal of all exemptions to the 12% value-added tax (VAT) payment; and an increase in excise taxes on cigarettes, alcoholic drinks, and sugar beverages as a means to raise revenue for debt payments.
This, after the Philippines ended 2021 with an outstanding debt of P11.73-trillion or a 19.7 percent increase from 2020.
This translates to a 60.5 percent ratio of public debt to gross domestic product, representing a 16-year high.
“Kailangan natin magbayad ng utang pero huwag naman natin kuhain sa mga seniors, PWDs, mga naghihingalong exporters at iba pang mga VAT-exempt ang pambayad ng utang ng gobyerno (We need to pay off debts but let's not get it from our seniors, persons with disabilities, struggling exporters and from other VAT-exempt sectors)," Escudero said.
"Mag-isip tayo ng paraan para matugunan ang ating responsibilidad ng hindi pinapahirapan ang mga tao (Let's think of other ways to fulfill our responsibility in a way that won't make people suffer),” Escudero said.
Instead of raising taxes, Escudero said the government should consider selling its assets and maximizing public-private partnerships (PPP) to fund infrastructure development.
He noted there are 63 PPP projects in the pipeline now, but this could be expanded by the next administration.
“There are ways to free up fiscal space for debt payments, instead of immediately looking at new taxes. PPP is the way to go," said Escudero who is seeking a Senate comeback in the upcoming May 2022 elections.
"For the long term, the government should exert more effort into eliminating corruption, which is bleeding us P700-billion annually. That’s enough to build 1.4 million housing units,” he further said, citing data from the Deputy Ombudsman.