EDITORIAL - Improve collection instead of new taxes

During a recent press briefing, the Department of Finance said imposing new taxes, deferring scheduled tax reductions, and repealing of certain tax exemptions is the best way to pay the country’s P13 trillion debt.

According to the DOF these are the only ways the gains of this administration can be secured as the next one is expected to start operating under “tight fiscal space”.

Deferring tax reductions, and repealing certain tax exemptions have their merits. But imposing new taxes? That will certainly not be popular among the people.

But never mind the unpopularity of it, we can expect many people to suffer even more. As we said in a previous editorial, taxes have the most impact on those who are actually paying them correctly. And usually those who pay the right taxes are usually in the same category of people who cannot expect any help from the government during times of calamities or disasters.

This is the same category that pays for the ayuda going to those that usually don’t pay taxes.

As opposed to imposing new taxes, how about the Bureau of Internal Revenue, which is under the DOF, improve how it collects taxes? The issue has always been ineffective tax collection. Those who cannot avoid the taxes have to pay them, usually through the nose. But there is really no telling that what they pay goes to where it should after these are collected.

In many instances, especially involving those who can actually afford to be taxed many times over, it’s also a question if these taxes are being collected or if the right amount is being forked over.

New taxes will always be an added burden to those who actually pay them right. The government should not ask the people to pay new taxes when some have not even paid theirs.

Just an aside, but we know where the government can source P23 billion in taxes yet unpaid. Here’s a hint; a member of this prominent family was proclaimed president after winning in the last election.