The Department of Finance (DOF) has urged Congress to put in place a national ID system to ensure that proposed subsidies to soften new taxes will go to the proper beneficiaries.
“Once the Congress enacts a law enabling a national ID system, the first to be issued such cards will be senior citizens and persons with disabilities,” said Finance Undersecretary Karl Kendrick Chua.
The 5.2 million poor households not yet covered by the government’s conditional cash transfer program, known as the Pantawid Pamilyang Pilipino Program, will follow, Chua said.
“The Philippine Statistics Authority will issue the ID cards, with the National Economic and Development Authority providing oversight functions,” he said.
The Department of Social Welfare and Development, meanwhile, will coordinate the various social benefits programs that will be put in place under the Duterte administration’s Tax Reform Acceleration and Inclusion (Train) Act under House Bill No. 5636.
Train contains the first tax reform package aimed at bringing down personal income tax rates while slapping new or additional consumption taxes, which are expected to hike prices of basic goods and transport costs.
“The DOF proposal is for the national ID to contain biometrics data about an individual, with the possibility of adding an EMV (Europay-Mastercard-Visa) chip card to load the cash subsidies for persons legally entitled to such benefits,” Chua said.
The proposed national ID will replace all government-issued IDs save for passports and drivers’ licenses, to be issued within two years to 105 million Filipinos after the passage of the law, he said.
The DOF noted that before Congress adjourned sine die, the House committee on population and family relations already approved the proposed establishment of a national ID system.
“Under the proposed ‘Train,’ 40 percent of the annual incremental increase from oil excise taxes will go to social-mitigating measures,” Chua said.
“The balance of 60 percent will bankroll projects on infrastructure, education, health, housing and social protection,” he added.
“The targeted program for over 10 million households involve unconditional cash transfers of P2,400 for one year for every beneficiary-family,” Chua said.