A dozen of the country’s former chief economists and finance secretaries on Monday said the Department of Finance’s proposed tax policy reform program would help the country achieve inclusive growth, slash poverty and lift the Philippines to become a high middle-income country by 2040.
In a joint statement, the DOF quoted seven of its former secretaries, seven former undersecretaries and five former heads of state planning agency National Economic and Development Authority as saying in a manifesto that they “fully endorse” the DOF’s tax reform packages.
“We, the former secretaries and undersecretaries of the DOF and the Neda fully support the DOF’s comprehensive tax reform program as a long needed corrective to our tax system’s structural weaknesses and as a tool to achieve inclusive growth and transformative poverty reduction in our country,” they said.
“The DOF’s proposed comprehensive tax reform is progressive, timely and well-crafted to achieve the vision of a prosperous Philippines free of poverty. For these reasons we strongly support the reform and urge the public to do the same,” they added.
The signatories to the manifesto included former DOF chiefs Juanita Amatong, Jose Isidro Camacho, Roberto De Ocampo, Jesus Estanislao, Jose Pardo, Cesar Purisima and Cesar Virata.
The former finance undersecretaries who also signed the manifesto to support tax reform were Joel Bañares, Romeo Bernardo, Cornelio Gison, Lily Gruba, Milwida Guevara, Jose Emmanuel Reverente and Florencia Tarriela.
From Neda, former directors general Arsenio Balisacan, Emmanuel Esguerra, Cielito Habito, Felipe Medalla and Romulo Neri said they were supporting the DOF’s tax reform proposal, which would help transform the country in one generation or by year 2040 under the so-called AmBisyon Natin 2040 vision.
Launched last year, AmBisyon Natin 2040 is aimed at tripling Filipinos’ per capita income to $11,000 in 24 years’ time by sustaining at least 6.5-percent annual gross domestic product growth alongside the implementation of policies that would make the Philippines a high-income country by 2040.
A survey conducted early last year showed that the majority of Filipinos aspire for a “simple and comfortable life,” which Neda had said reflected middle-class lifestyle—earning enough, educating all children until college, owning a car, owning a medium-sized house, finding time to relax with family and friends, owning a business and being able to travel around the country.
Last October, President Duterte signed Executive Order No. 5, which adopted the AmBisyon Natin 2040 as the long-term vision for the Philippines, such that “by 2040, the Philippines shall be a prosperous, predominantly middle-class society where no one is poor.”
The 19 former officials said tax reform would be an integral part of the goal to slash poverty. The Duterte administration wanted to cut poverty incidence to 14 percent by 2022 from 21.6 percent last year through its 10-point socioeconomic agenda, which included tax reform.
“Overall, tax policy reforms are needed to make the tax system fairer, simpler and more efficient, to put more money in people’s pockets and encourage investment, job creation, and poverty reduction, while making our country more competitive regionally,” the former DOF and Neda officials said.
“We share Neda’s goal—that by 2040, the Philippines will be a prosperous, predominantly middle-class society where no one is poor, and our people will live long, healthy lives, be smart and innovative, and live in a high-trust society. We fully endorse the DOF’s tax reform as part of the solution toward achieving these aims,” they added.