Sen. Francis “Chiz” Escudero (Bibo Nueva España/Senate PRIB)
MANILA, Philippines — The administration of President Ferdinand “Bongbong” Marcos Jr. should uphold its “no tax exemption” policy in the Maharlika Investment Fund (MIF) bills.
Senator Francis Escudero said this on Thursday as he raised concern about the privileges that will be accorded to the Maharlika Investment Corporation (MIC).
“The secretary of budget and management was part of the previous administration. The secretary of finance was the secretary of budget and management in the previous administration and the policy of the previous administration was not to provide tax exemption, or at the very least minimize it,” Escudero said in a statement.
“It is bad policy to have a lot of exemptions and very difficult to implement, if at all. So, I think they should continue with that policy,” he continued.
The MIC, under the proposals, will be exempted from national and local taxes, and from coverage of the Governance Commission for Government-owned and -controlled corporations, the Government Reform Procurement Reform law, and the Salary Standardization law.
MIF and MIC’s importation of supplies and equipment will likewise be exempted from customs duties, pursuant to the Customs Modernization and Tariff Act.
Escudero pointed out that the Land Bank of the Philippines and the Development Bank of the Philippines (DBP) — among the sources of seed money for the MIF — have been paying taxes like other corporations.
“The Land Bank and the DBP do not do not enjoy these exemptions. So, why to give it to the MIC?” the senator asked.
Escudero said that he will recommend other sources of the MIF “in the next couple of days” after they complete their research.
The Senate committee on banks, financial institutions, and currencies started its debates on Senate Bill No. 1670 and House Bill No. 6608, measures seeking the creation of the MIF, on Wednesday.
The House of Representatives approved their version of the bill in December last year.
Proponents of the MIF bills are allies of President Marcos.