Lawmaker opposes plan for tax amnesty program

A lawmaker over the weekend expressed opposition to a plan for a tax amnesty program, claiming that the move is "totally unfair" to employees who pay their taxes on time. 

"A tax amnesty would certainly not benefit the millions of salaried employees whose income taxes are already being automatically withheld from their monthly paychecks," Surigao del Sur Representative Johnny T. Pimentel said in statement on Sunday.

Pimentel, chairman of the House committee on good government and public accountability, countered Finance Secretary Carlos G. Dominguez III's remark that the government is planning to implement an Indonesia-style tax amnesty program in a bid to increase government revenues.

He said that before doing so, the government must first prove that it is capable of going after tax evaders.

"You know, there's a psychological effect here. If you declare a tax amnesty and they're not afraid of you, they'll not give you any money, right?" he said.

"Here, you have to know that we are capable of going after tax cheats. That's when we will announce the tax amnesty," he added.

He also urged the government to avoid sending mixed signals to tax cheats, and just focus on strong enforcement of tax collection.

"Strong enforcement is the best strategy to ensure full compliance with our tax laws, and the grant of amnesties every now and then is totally inconsistent with tough application." 

So far, the Bureau of Internal Revenue (BIR) has already filed several cases against four companies for their alleged combined tax liability of P80.36 million.

It also filed a tax evasion case against cigarette maker Mighty Corp. for the supposed use of bogus tax stamps. —Jon Viktor Cabuenas/LBG, GMA News