Tax

Boosting state revenues

July 10, 2022 People's Tonight 249 views

WITH a huge foreign debt, the government of President Ferdinand “Bongbong” R. Marcos Jr. needs to boost its revenues to be able to meet the needs of the mushrooming population.

As the country’s legislative arm, Congress, which is composed of the Senate and the House of Representatives, is supposed to be the first rampart of democracy in this part of the world.

Of course, the people are made to believe that our 24 senators and more than 300 district/sectoral congressmen are in a position to meet the needs and aspirations of the 110 million Filipinos.

Thus, the two-chamber Congress would do well to fast-track the passage of a piece of legislation, which is aimed at boosting government revenues.

Initially, the crusading Marcos Jr. administration, which ends at 12 high noon on June 30, 2028, wants to tax all digital or online transactions and single-use plastic products.

The proposed two tax measures are expected to generate an estimated yearly value-added tax (VAT) collection of more than P14.2 billion, according to Finance Secretary Benjamin Diokno.

Diokno said: “If you buy a product from a regular store, you pay tax; I think we should also pay tax on online sales,” said Diokno, who used to be the governor of the Central Bank of the Philippines.

Aside from boosting government revenues, the planned tax on single-use plastic products is seen to be a big help to the success of the national government’s campaign to address climate change.

Admittedly, single-use plastic products thrown by informal settlers or squatters and passersby into stinking drainage canals, esteros, rivers and lakes clog these waterways.

As a result, these waterways easily overflow their banks,sending rampaging floodwaters to low-lying communities not only in Metropolitan Manila (MM) but elsewhere.

As well-meaning citizens, we cannot overemphasize the importance of taxing online transactions and single-use plastics.

Ito ay kung gusto nating mapondohan ang socio-economic development projects ng gobyerno nasyonal at mabayaran ang ating malaking utang sa labas ng bansa.

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