On the Proposed Tax Reforms
August 14th, 2004 at 5:29 am (General)
On the top of President Arroyo’s ten point agenda is the implementation of tax reforms which consist mainly of higher tax rates and heavier taxes on luxury items such as cigarettes. She defends this position by saying that it entails the sacrifice of every Filipino to keep our economy afloat. During one of her PR stunts aka Pulong Bayan Forums, she emphasized that for the government to deliver its services properly and adequately, the Filipinos should pay the price. I beg to differ.
Although I am not entirely familiar with our current tax system, I believe that the problem is not in the amount of taxes that people pay. The problem is how taxes are being collected (or not collected) and how the money is utilized. Although we have a current system in which people with more money supposedly pay bigger taxes, it is undeniably the people who earn or have less which feel the brunt of paying taxes from which they benefit minimally. Already, average (read: POOR) Filipinos are earning way beyond their needs with the progressing deflation of the peso, the rising oil prices, the over-pricing of basic utilities and the ever-increasing price of commodities.
Although the region is not wholly benefiting from it, Region XI registered 98% collection of taxes for 2003. Which only means that proper and adequate tax collection can be done. And it does not just entail work on the part of the government but more importantly, cooperation from the private sector, specifically, the big businesses. Currently, there is an overdue case against a popular taipan who owns/controls a lot of big businesses. How he and his companies managed to hoodwink the BIR for years amazes me. Despite of this known fact, the government still favors him and his businesses. If only cases like this are resolved swiftly and sufficiently, other tax evaders or would-be tax evaders would think twice before trying to BS the BIR.
Given that the systemized corruption in the government is unavoidable and already accepted as the Filipino way of life, I recognize that it is impossible to wholly rid of the possibility of misappropriation funds within the government. However, I do not believe that minimizing it is impossible. Sanctions and penalties on erring officials would discourage the corrupt practices within the system. As citizens of our country, civilians have the responsibility to be eternally vigilant of our public servants. Watching silently while our supposed servants deprive us of what rightfully belongs to us is nothing but criminal.
President Arroyo’s aim to keep our economy afloat is indeed commendable. But the means by which she wishes to accomplish it leaves so much to be desired. Unless tax evaders and corrupt government officials are rightfully brought to justice, higher tax rates would only mean more money for the corrupt to obtain. Even if some miracle happens and corruption is somehow decreased to the minimum, it is undeniably those who already do not have enough who will be suffering more. The imposition of higher tax rates right now would have minimal impact on those who can contribute more, perhaps forcing some people to give up a vacation or lessening the number of cigarettes they smoke, while burdening those who already have less than they need.
Related Posts:
ria said,
August 23, 2004 at 7:52 am
glad you appreciate it