Pacquiao: Massive tax cuts, but more non-tax revenues

MANILA, Philippines — Sen. Manny Pacquiao is pushing for massive cuts on personal and corporate income taxes to help reduce government deficit and promote faster economic recovery.

He said the government’s dependence on tax revenues is very burdensome for Filipinos and results in high cost of doing business for investors.

“The more we impose taxes, the heavier for the people. That’s a heavy burden for our countrymen. You’re choking the people because of so many taxes – prices go up because of taxes,” Pacquiao noted in mixed Filipino and English during the online membership meeting of the Rotary Club of Manila.

“There are many pretentious leaders claiming to be geniuses. But if you’re really geniuses, why is the country still poor? The government is spending so much while earning very little, that’s why there’s not much to cover our annual budget,” he added.

Pacquiao, who is seeking the presidency, said it was ironic that while the country’s budget has been increasing each year, the amount of revenues that it generates is steadily declining. This, to him, forced the government to resort to huge borrowings because the country’s budget is almost double the amount of its revenues.

He pointed out that for 2021 alone the approved budget was P4.2 trillion while government revenues were only pegged at P2.9 trillion. This huge budget gap, he claimed, is aggravated by the culture of corruption that has permeated all levels of governance.

“That’s why I want to see all of the corrupt together in jail,” he said.

According to him, tax cuts could free up more funds for investments as well as spending that will spur growth and help the country recover from the pandemic. He also pushed for more non-tax revenues.

He said the government should create a favorable business climate that would allow domestic and foreign direct investments to flourish and maximize the potential of its owned and controlled corporations, these being big revenue earners.

Pacquiao said his mission is to create more jobs for Filipinos as he vowed to help micro, small and medium enterprises and support the business sector through the lowering of corporate taxes and an assurance of cheap but steady internet and power supply.

He also appeared to have closed the door to running alongside Vice President Leni Robredo, which he earlier considered as a possibility.

“I will not back off from my candidacy for the presidency because I know I can do a lot for the country,” he told the Rotarians.

Earlier, when asked of the possibility of a last-minute team-up with Robredo, he said “anything” was possible before the Nov. 15 deadline the Commission on Elections has set for substitutions.

Pacquiao was also being considered by various backs as a vice presidential candidate.

No El Shaddai support?

Meanwhile, El Shaddai has severed its ties with Buhay party-list Rep. Lito Atienza, Pacquiao’s running mate, raising the possibility that the boxing icon may not get the support of the Catholic charismatic group.

Former Buhay congressman Rene Velarde and Buhay secretary general Mariano Michael Velarde Jr., sons of El Shaddai founder Bro. Mike Velarde, both resigned from the group, citing a disagreement between their father and Atienza on the placement of nominees for next year’s elections.

“As a result of their discussion on the 4th of June 2021, Bro. Mike decided to sever his support, association and all organizational links with Buhay Hayaang Yumabong Party-list. And we, the undersigned, collectively resign as officers and members of Buhay Party-list,” read a part of their resignation letter sent to Atienza.

“Rep. Atienza seemed to have lost confidence and adherence to Bro. Mike’s discernment, decision-making and stewardship for his flock, hence, Rep.?Atienza’s resistance to honor the standing agreement in the nomination for the 1st seat. We can assume that if Rep. Atienza does not adhere to their agreement and to Bro. Mike’s discernment and decision-making on this matter, what can prevent him to totally disregard Bro. Mike’s guidance’s as Head Servant on other issues and concerns on our advocacy and legislative agenda,” the letter also read.

The Velarde brothers recalled how the partnership between the two organizations started “some 21 years ago” when Atienza, through Mel Robles, sought El Shaddai’s support in pursuing common advocacies of promoting and protecting “the dignity of life and pro-life principles.”– Edu Punay, Neil Jayson Servallos