Isko: Gov’t loss from fuel, power tax cuts could pay off

MANILA, Philippines — The government can afford to lose billions of pesos from drastic 50-percent tax cuts on fuel and electricity as long as the forgone revenues redound to the people’s benefit, Manila Mayor Francisco “Isko Moreno” Domagoso said on Saturday.

“So what if the government loses money when that money goes back to the people? The government can step back. It’s time that we put people first,” the Aksyon Demokratiko standard-bearer said in a precampaign jaunt in Caloocan City.

Domagoso dismissed concerns by government economists about the fiscal consequences of his proposal, as he continued to woo voters by promising a 50-percent reduction in tax on petroleum products and electricity in his first year should he win the presidency, a campaign pledge he first made earlier this month.

“The government can give way. It’s not the government’s job to get rich but to improve the lives of the people,” the mayor said in Filipino, eliciting cheers at a stadium half-filled with people due to social distancing rules.

Last week, the Department of Finance said the national government would lose P131.4 billion next year if fuel excise taxes were suspended in response to rising oil prices.

But Domagoso argued that the government could afford a P130-billion loss if it meant improving the lives of struggling Filipino families during the pandemic.

“When petroleum prices are high, transport fares are high. When petroleum prices are high, food prices are high,” he said.

“When petroleum prices are high, power rates are high, unless you’re like me who’s a part owner of Meralco (Manila Electric Co.),” Domagoso joked, recalling the time when he was living as an informal settler with an illegal connection to the grid.

“Where do you find a house with power without having to pay bills? That’s life as a squatter,” the mayor said.

Domagoso said he had no pretensions about his capability “but for me, the government is simple, it’s for the people.”