Senators slam gov’t plan to hike fuel tax
Senate Minority Leader Ralph Recto vehemently opposed on Thursday the government’s plan to impose additional tax on fuel products, saying there is no “fiscal crisis” to justify its imposition.
Two other senators — Senate Majority Leader Vicente “Tito” Sotto III and Senator Francis “Chiz” Escudero — were also cold on the government’s plan.
“I am against it. There is no fiscal crisis. The timing is also bad now that oil prices are on its way up. Just improve collection efficiency and stop smuggling,” Recto said in a statement.
“In addition , government collects more taxes when the economy grows faster. Then grow the economy. Spend the budget first,” the Minority Leader added.
Sotto and Escudero said the government should first look for other revenues or collect existing taxes before imposing additional taxes on the public.
“Perhaps we should look at other sources of revenue before imposing on the public,” Sotto said in a text message.
“Further study in the Senate is necessary. Meron kaming mga ( we have) economic experts and members with a lot of common sense therefore the issues can be fully discussed,” he said.
Escudero said he has yet to study the proposal but said it seemed “too much.”
“Also, they would first have to show and prove that: 1) They have exhausted all efforts to collect existing taxes; and 2) They can actually spend that money especially given our experience last year re low absorptive capacity,” he said in another text message.
Told about the government’s explanation that the public could afford the additional tax on fuel once their income tax has been reduced, Escudero pointed out that the increase in taxes “will far outweigh the net effect of the lowering of income tax rates.” CDG/rga
RELATED STORIES
