Escudero rejects higher taxes, urges more efficient collection

Senator Francis “Chiz” Escudero on Tuesday said he does not agree with the government’s proposal to impose new and higher taxes.

In a television interview, Escudero said the Bureau of Customs (BOC) and the Bureau of Internal Revenue (BIR) should improve their collection instead.

“It’s an easy way out. Instead of collecting taxes properly, instead of increasing efficiency, ‘let’s just impose higher taxes’,” Escudero pointed out.

“If you look at the month-on-month revenue take of both Customs and the BIR, they’re way below target...Here they are not collecting taxes and yet running to Congress and asking for new taxes,” he said.

The proposed tax reform measure of the Duterte administration is aiming to lower income taxes while limiting value added tax (VAT) exemptions, adjusting excise taxes on oil and automobiles, and imposing new taxes on sugar sweetened drinks.

The proposal has already been passed on final reading at the House of Representatives, and is now pending approval at the Senate.

Escudero also rejected the argument that the tax on sweetened beverages, including soda, 3-in-1 coffee, and energy drinks, is a health measure.

“They are calling it a health bill but in truth and in fact, it’s not.  It’s just a revenue measure. Unfortunately, lahat ng matamis at lahat ng maalat wala kang makikitang ganyan sa mamahaling grocery,” Escudero said.

“Lahat nang gusto nilang buwisan makikita mo sa sari-sari store. So sa dulo, sino ang tatamaan ng tax on sweeteners and tax on saltly foods? Ang tatamaan ay yung pinakamahihirap nating mga kababayan,” he said.

Senator Sonny Angara, chairman of the Senate ways and means committee, earlier said the Department of Finance (DOF) should reconsider the proposed P10-per-liter excise tax on sweetened drinks.

Angara said the sugar content should be used as a basis, rather than the volume of sweetened drinks. —Kathrina Charmaine Alvarez/ALG/KVD, GMA News