Duterte cites importance of taxes in funding free tuition, other state programs

President Rodrigo Duterte on Wednesday pointed to the importance of taxes in funding his government's social programs amid calls to suspend the implementation of the tax reform law due to rising fuel prices.

Duterte recalled an insight from Education Secretary Leonor Briones, a former national treasurer, that there is no other way the government "can raise the money for the needs of the Filipino people except through taxes."

"So ang tao kailangan bumayad. We have so many ambitious projects, trying to keeping up with the modern trend of education that giving it free, almost free for all," he said in a speech at Malacañang following the signing of an agreement in connection with the implementation of the Free Higher Education Law (Republic Act 10931).

"Kung talagang hindi makabayad, wala man tayong magawa doon but I will go for the sin taxes, I know that’s your favorite. We go for a higher diyan sa sugar," Duterte said.

The Tax Reform for Acceleration and Inclusion (TRAIN) law reduced personal income tax rates but raised the excise tax on petroleum products and automobiles, and imposed a levy on sugar-sweetened beverages.

However, the recent increase in petroleum products prices prompted calls for the suspension of the TRAIN Law, which imposed an excise tax of P2.50 per liter on diesel and raised the levy on gasoline to P7 from P4.35 per liter.

The President earlier said that he wished to keep the TRAIN law because government needed the revenue for its infrastructure program, but if Congress decided otherwise, he was helpless to do anything about it.

"We discussed so many things where we can trace everything and I would just tell the people that you know, 'if you want improvement on anything, practically all aspect of our governance would depend on taxes,'" Duterte said.

Economic managers expect that the first package of the TRAIN law will generate around P90 billion in additional revenues this year, part of which will fund the government's infrastructure projects as well as social mitigating measures to offset the impact of the anticipated increase in commodity prices. — BM, GMA News