Business groups’ plea: Targeted measures, not oil, power tax suspension
FILE PHOTO: Jeepneys on the road. INQUIRER
MANILA, Philippines — Several business groups are asking presidential candidates and other politicians calling for the suspension of oil and electricity taxes to “carefully reconsider their request.”
In a joint statement Friday, eight business groups proposed the implementation of targeted measures instead of a “blanket suspension or reduction in taxes.”
The statement was signed by the Financial Executives Institute of the Philippines (FINEX), the Foundation for Economic Freedom (FEF), GoNegosyo, the Investment Houses Association of the Philippines (IHAP), the Makati Business Club (MBC), the Philippine Chamber of Commerce and Industry (PCCI), the Philippine Retailers Association (PRA), and the Subdivision and Housing Developers Association (SHDA).
“We understand the desire to bring relief to the public and offset rising inflation. However, instead of a blanket suspension or reduction in taxes, we urge them to consider tried and tested targeted measures to assist sectors and citizens who need it most,” the groups said.
“This will limit the drain on government revenue at a time when more than ever the government needs funds to fight COVID and accelerate job-creating economic recovery,” they added.
The group noted that public utility vehicles (PUVs) only account for 30 percent of the diesel consumption in the country. This means that most of the benefit of a blanket suspension would go to people who do not operate or use PUVs, they said.
“These are funds that the government could and should use on public services that would most benefit lower-income and vulnerable Filipinos,” the groups said.
Targeted measures such as subsidies to the transport sector would also offset the impact of fuel price increases, allowing PUV operators to maintain a decent profit and take-home pay without raising prices on the commuting public, the groups also pointed out.
The Department of Finance (DOF) has expressed its disapproval over the proposed suspension of excise tax on fuel, citing a massive loss in government revenue.
For now, the government said it will give away cash grants totaling P1 billion to at least 178,000 registered drivers of PUVs, like jeepneys and buses, to help ease the impact of continuing increases in oil prices.
