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Senate not too keen on passing some Palace-backed tax measures, Escudero says

Published Jul 27, 2023 05:18 am


Some of the tax measures that President Ferdinand “Bongbong” Marcos Jr. is pushing may face rough sailing in the Senate, Sen. Francis “Chiz” Escudero said on Thursday, July 27. Some of these tax measures, Escudero said, may even be blocked, especially if they will cause misery to an already overtaxed citizens. “It is also likely that the revenue measures would be doomed if the administration team that would be proposing the tax measures “is the same crew that did a poor job in explaining the Maharlika Investment Fund (MIF) Act,” Escudero said. Among the tax measures that the President is pushing for Congress to approve under the government medium-term fiscal framework is the bill seeking to impose the 12 percent value-added tax (VAT) on digital transactions or services. President Marcos also mentioned the rationalization of mining fiscal regime and the bill increasing the motor vehicle users charge or road users tax during his second State of the Nation Address (SONA) last Monday, July 24. But “at this time, selling taxes to Filipinos is like asking an Eskimo to buy a freezer,” Escudero pointed out referring to a Palace-backed bill that would slap taxes on online purchases. “One, we have become an e-commerce republic. So, expect a massive pushback when you start taxing any good added on the cart,” the senator from Bicol said. Escudero said he also expects the bill raising the motor vehicle registration fees to face roadblocks as car owners are already taxed “twice daily at the pump when gas has a VAT on top of the excise tax.” “Tapos nandyan pa ang toll (Then when also have the toll fees), the price motorists pay for government’s failure to fix public roads,” he added. Escudero said the Marcos administration will be putting “its huge political capital on the line if it insist on pushing these measures at a time Filipinos are experiencing high prices and low wages. “What would help is good messaging that will win over the people that while these proposals are painful, they are needed,” he pointed out. As a courtesy to the President, however, Escudero said he is willing to listen to the tax proposals, and study its merits. “Kaya dapat ang ipapadalang mga taong magbebenta ng isang mahirap lunukin na produkto ay ‘yung hindi mahina sa pagpapaliwanag (That’s why they should send here people who can sell products that are hard to sell and can provide clear explanations about the measures),” he stressed.

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tax hike Senator Chiz Escudero VAT on digital services PBBM motor vehicle registration
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