Manila Bulletin
Pangilinan opposes plan to tax salted foods, says gov't should instead lift bank secrecy law to boost tax collection
Pangilinan opposes plan to tax salted foods, says gov't should instead lift bank secrecy law to boost tax collection
Pangilinan opposes plan to tax salted foods, says gov't should instead lift bank secrecy law to boost tax collection
Published Nov 3, 2019 05:27 pm
By Hannah Torregoza
Instead of taxing salted food like “daing”, Senator Francis "Kiko" Pangilinan said the government should consider lifting the laws on secrecy of bank deposits to increase tax collection.
Sen. Francis Pangilinan
(MANILA BULLETIN FILE PHOTO) "Lifting such laws will ensure correct tax declarations as well as combat corruption, tax evasion, money laundering, and other financial crimes," Pangilinan said. The senator pointed out the Department of Finance (DOF) itself has admitted that the national government has been unable to collect an estimated P668.34-billion in taxes and duties annually, or a third of the government’s annual tax collection, due to restrictive bank secrecy laws. “If we are able to collect this amount, we will have more funds to help the poor, build schools for those in far-flung areas, and provide medical attention to the sick," he said. An organic farmer, Pangilinan said the government should educate the public on the ill-effects of salt on health to curb diseases related to high salt intake. "Education awareness of the ill effects of salt should be the emphasis rather than imposing a tax,” the senator stressed. Pangilinan earlier filed Senate Bill No. 634 or the Deposits Disclosure Act, which seeks to ensure that all deposits of whatever currency with banks and non-banking financial institutions in the Philippines can be examined. Under the bill, such bank deposits can be inquired, or looked into under the following purposes: • Upon written permission or waiver of depositor; • Inquiry by the Office of the Ombudsman; • Upon order of a competent court in relation to a case pending before it; • Investigations by the Senate/House of Representatives; • Investigations by any government agency or financial regulator including but not limited to the Anti-Money Laundering Council (AMLC), Bureau of Internal Revenue (BIR), Bangko Sentral ng Pilipinas (BSP), Securities and Exchange Commission (SEC), Philippine Deposit Insurance Corporation (PDIC), Insurance Commission (IC); • Inquiry by independent auditors; and • Inquiry on the account/s of a deceased depositor by his/her immediate family members or heirs. Those who refuse to disclose or report deposits or any abuse on the initiation, conduct or use of any inquiry of the accounts face a penalty of at least 3 years and or a fine of at least P200,000. "Criminals should not be able to hide behind laws to shield their illegal activities," Pangilinan said. "In the spirit of transparency and accountability, it is time to repeal the bank secrecy laws in the country,” he further said. READ MORE: DOH to propose a ‘sin’ tax on salty products, ‘Asin’ tax anti-poor, inflationary, highly regressive – House leaders, DOH: Sin tax proposal on salty products needs further discussion
Sen. Francis Pangilinan(MANILA BULLETIN FILE PHOTO) "Lifting such laws will ensure correct tax declarations as well as combat corruption, tax evasion, money laundering, and other financial crimes," Pangilinan said. The senator pointed out the Department of Finance (DOF) itself has admitted that the national government has been unable to collect an estimated P668.34-billion in taxes and duties annually, or a third of the government’s annual tax collection, due to restrictive bank secrecy laws. “If we are able to collect this amount, we will have more funds to help the poor, build schools for those in far-flung areas, and provide medical attention to the sick," he said. An organic farmer, Pangilinan said the government should educate the public on the ill-effects of salt on health to curb diseases related to high salt intake. "Education awareness of the ill effects of salt should be the emphasis rather than imposing a tax,” the senator stressed. Pangilinan earlier filed Senate Bill No. 634 or the Deposits Disclosure Act, which seeks to ensure that all deposits of whatever currency with banks and non-banking financial institutions in the Philippines can be examined. Under the bill, such bank deposits can be inquired, or looked into under the following purposes: • Upon written permission or waiver of depositor; • Inquiry by the Office of the Ombudsman; • Upon order of a competent court in relation to a case pending before it; • Investigations by the Senate/House of Representatives; • Investigations by any government agency or financial regulator including but not limited to the Anti-Money Laundering Council (AMLC), Bureau of Internal Revenue (BIR), Bangko Sentral ng Pilipinas (BSP), Securities and Exchange Commission (SEC), Philippine Deposit Insurance Corporation (PDIC), Insurance Commission (IC); • Inquiry by independent auditors; and • Inquiry on the account/s of a deceased depositor by his/her immediate family members or heirs. Those who refuse to disclose or report deposits or any abuse on the initiation, conduct or use of any inquiry of the accounts face a penalty of at least 3 years and or a fine of at least P200,000. "Criminals should not be able to hide behind laws to shield their illegal activities," Pangilinan said. "In the spirit of transparency and accountability, it is time to repeal the bank secrecy laws in the country,” he further said. READ MORE: DOH to propose a ‘sin’ tax on salty products, ‘Asin’ tax anti-poor, inflationary, highly regressive – House leaders, DOH: Sin tax proposal on salty products needs further discussion