Speaker cool to excise tax on fuel

MANILA, Philippines - Taxpayers should not be burdened with new taxes, as it would be like punishing them for the incompetence of tax collectors, Speaker Pantaleon Alvarez said yesterday.

In an interview with dzMM, the Davao del Norte congressman highlighted the Bureau of Internal Revenue (BIR)’s poor collection rate of only 4.3 percent for the 12 percent value-added tax (VAT).

“Why impose taxes on some items just to cover the inefficiencies of the BIR in tax collection?” Alvarez said, apparently referring to the proposed P6 excise tax on diesel and P10 on gasoline.

Alvarez said he had instructed Quirino Rep. Dakila Carlo Cua, chairman of the House ways and means committee, to make a thorough evaluation of how much or how little the government is actually collecting.

“For me, the people should not be made to suffer for the shortcoming of our revenue collector,” he said in Filipino.

Other administration lawmakers also vowed to oppose anti-poor measures but stressed they remained committed to helping the Duterte administration raise much-needed revenues.

“We have to support the Speaker in working for a systematic and efficient system to guarantee impressive tax collection needed to fund important projects,” House Deputy Speaker and Batangas Rep. Raneo Abu said.

“We shall devote our efforts to ensure efficiency in tax collections and plug leakages in the petroleum and beauty industries which, according to market analysts, could run to billions of pesos,” Ako Bicol Rep. Rodel Batocabe said, noting the 4.3 percent VAT collection rate.

Batocabe also announced he has withdrawn his proposal to tax beauty products in the wake of public furor.

“In light of the intense controversy generated by our proposal to provide an alternative to the excise tax on petroleum, we deemed it prudent not to push for the so-called vanity tax,” he said.

“We hope that the strong sentiment generated against taxing beauty products and services will transform into encouragement for our people to urge the BIR and the Bureau of Customs to collect taxes more effectively and efficiently in the oil and beauty industries,” he said.

“For after all, these industries owe their large profits to our people. At the very least, they should pay correct taxes,” the party-list lawmaker added.

“As representatives of our people mandated by our Constitution to identify sources of revenues for the government, the vanity tax was proposed in good faith to spare our people from the scourge of imposing excise taxes on petroleum,” he said, defending his move to propose the measure, along with Quezon City Rep. Winnie Castelo.

“We will just defer it. No more reason. The vanity tax is only an alternative if DOF will push through with their recommendation to increase tax on fuel and remove VAT exemptions on senior citizens,” Castelo, chairman of the House committee on Metro Manila development.

“If DOF pulls out of that plan then the vanity tax is no longer necessary,” Castelo explained.