New taxes a possibility, Villar tells Makati Business Club

It wasn’t exactly neutral territory. Or at least for presidential aspirant Senator Manuel Villar. After all, the Makati Business Club (MBC) – whose members belong to top executives of the Philippines’ largest companies – is perceived as the bulwark of Villar’s strongest rival, Senator Benigno Simeon “Noynoy" Aquino III. But that didn’t restrain Villar’s candor when he delivered a speech to the MBC on Wednesday, February 10 at a Makati City hotel. “I was informed of the result of your [December in-house] survey. I’m not exactly your favorite candidate," the senator said, eliciting laughter from the audience. Villar made these remarks while sharing the table with three MBC officials, two of whom served under Aquino’s mother, the late president Corazon Aquino. Joining Villar at his table were MBC Treasurer Jose Cuisia Jr., who served as Aquino’s central bank governor, and MBC Chairman Ramon del Rosario Jr., who was Aquino’s finance secretary, and MBC Executive Director Alberto Lim. In the meantime, other members of the audience included Jaime Augusto Zobel de Ayala and Fernando Zobel de Ayala, who both currently head the Ayala Corp., one of the country’s oldest and largest conglomerates. The Ayala brothers – including family members – are known to be close to the Aquinos. Despite what appeared as unfamiliar territory, Villar was unfazed. On that Wednesday morning, he unveiled his plans for the Philippine economy if he becomes president. New taxes a possibility in Villar presidency During his speech, he refused to rule out new taxes, a move that will increase the cost of doing business in the Philippines. “The next administration will inherit empty coffers," he said to an audience of 300 MBC members. “It would be irresponsible of me to limit my options knowing the magnitude of the problem." For this year alone, the Philippines is expected to spend P300 billion more than it will earn in revenues. The P300 billion deficit is already 3.5 percent of the Philippines’ gross domestic product (GDP), Villar said. A rising deficit to GDP ratio is a cause for concern, indicating that the government may be unable to raise more revenues to pay for its deficit, especially with slower economic expansion. Revenues earned from increased taxes will not only be allotted to cover the deficit, it will also be used to fund his priority programs, Villar said. Villar to create a more competitive educational environment These programs include raising educational standards, building more schools, and rewarding deserving teachers. Villar said his education program will try to create a more competitive environment among schools and teachers, “so that those that perform well are rewarded and those that don’t are held accountable." He also vowed to establish additional infrastructure, including vast and immediate enhancements that will connect the North Luzon Expressway to the South Luzon Expressway through a Build-Operate-Transfer initiative. Airport developments and Roll-On, Roll-Off shipping infrastructure started by the current administration will also be continued, Villar said. All these will help “create an investment climate" that will help bring the Philippines “back on the radar screen of foreign investors." Simply “leveling the playing field is not good enough," he said. “What good is a level playing field here if the field in other countries is much more attractive? All investors want clear rules, simple tax laws, availability and competence of labor, and decent infrastructure," he said. Villar still hounded by C-5 road mess questions Even with these plans, MBC members failed to be impressed. Villar’s inability to answer allegations about his reported conflict of interest regarding the C5 road extension project was still on MBC members’ minds. The reported rerouting of the road project, among other issues, allegedly increased values of his real estate assets. “One of the concerns of the business community is his refusal to answer questions in the Senate hearing on the case of the C-5 issue," former MBC executive director Guillermo Luz. “Those are classic cases of conflict of interest when a public official was able to participate even in a government project." “Walang bagong kalinawan sa nangyari sa Senado, ganun pa din ang sagot niya," MBC Executive Director Alberto Lim said. But Lim still gave Villar a passing mark. “I would give Villar a grade of 80," Lim said, citing the “smooth" delivery of his speech. Although Noynoy’s delivery wasn’t as smooth, it was “more substantial and provided more examples," Lim said. - RJAB Jr., GMANews.TV