Next gov’t needs to raise new taxes—Teves, economists
Posted by akosistella on April 16, 2010
•Priorities tagged by Cabinet official, economists
MANILA, Philippines – Tax reforms should be prioritized by the next administration to shore up revenues that can be used to boost growth, economists and a Cabinet official yesterday said.
Speaking at a forum held at the Makati Shangri-La, Finance Secretary Margarito B. Teves called for a higher value-added tax (VAT) rate, lower corporate and income taxes, and approval of proposed reforms such as the rationalization of fiscal incentives.
The same proposals were aired by University of the Philippines (UP) economists — some of them former Cabinet officials in the previous administration — in a separate gathering a few blocks away.
“We have a declining revenue base due to [the] crisis and tax-eroding measures. There is an increased pressure on the deficit as government needs to sustain expenditures,” Mr. Teves said.
The ongoing El Niño weather pattern, a power crisis, as well as volatility in commodity prices are also threatening growth, he added.