By Jelly F. Musico
MANILA, Sept. 15 (PNA) – Senator Juan Edgardo ‘Sonny’ Angara on Tuesday urged economic managers of the Aquino administration to come up with a counterproposal “to break the impasse” on the proposed bill lowering income tax rate.
Angara made his call after President Benigno Aquino III rejected the proposal, saying it may result to an inflated deficit and create an adverse effect on the improving economy of the country.
”To break the impasse, they should come up with a counter proposal so that we can find some middle ground,” Angara, chairman of the Senate committee on ways and means, said.
”We have been talking about it a long time ago. If you don’t want a big reduction, what percentage you can suggest? It’s not right that when they said no, end of discussion,” he added.
Another proposal worth exploring, Angara said, was the effectivity date.
“We can discuss when cuts will take effect. We can delay it, just tell us when, and we will study it. We can agree on a schedule,” he said.
Angara said if projected revenue loss is what is holding back the government from endorsing the tax cuts, “then we can pinpoint non-urgent expenditure areas which can be cut.”
“The justification we’ve been hearing is that we need taxes to fund the budget. So if we do away with unnecessary expenditures, will you now be amenable to tax cuts?” Angara said.
Angara said the President may have been given an incomplete picture on the proposed tax reform bills.
”My fear was that the President has not been given correct information by his economic managers,” Angara said.
The senator, however, expressed optimism that he would convince the Aquino administration to support his proposal.
During Tuesday’s budget deliberations at the Senate, Angara questioned the Php50.34-billion budget proposal of the Department of Finance (DOF) that includes a so-called “budgetary support” for Land Bank and Development Bank of the Philippines.
“I’m definitely not in favor. That is not so urgent. We have more urgent needs such as the wage increase through lowered income tax,” Angara said.
Senate President Pro-Tempore Ralph Recto also questioned the Php30-billion ‘budgetary support’ for LBP and DBP.
”They cannot explain if it is really necessary for Php30 billion support. The amount of tax reform is almost Php30 billion,” Recto said.
Recto, however, said he respect the President’s position on the proposal to lower personal tax.
”His cabinet members were not able to explain well. Like for example, it has no effect to credit rating because the Php30 billion is only 0.2 percent of the gross domestic product,” Recto explained.
Recto said if the President will support it, the proposal will be passed within this month. (PNA)