Under the second phase, the President said she intends to bring the benefits of tough tax measures recently passed in Congress to the people through more jobs, better education, and improved health care, among others, in the next coming months.
In a speech at the Visayas Area Business Conference in Calicoan beach resort in Guiuan, Eastern Samar, the President said the second phase comes after she succeeded in getting fiscal reform measures from Congress that will generate R8 billion to R10 billion in annual revenues and other administrative reforms to improve tax collections, a fiscally responsible national budget, and the opening of the mining sector.
“We have so much to be thankful for but this is no time to rest on our laurels. We must get back to work immediately because there is so much to do,” she said.
For the second phase, the President said she will press forward with other “aggressive” economic and fiscal reforms intended to grow the economy and to improve the lives of Filipinos.
“My focus will be to crack down on tax cheats, increase initiatives against graft and corruption, launch an energy conservation and energy independence campaign, and bring prices under control with new consumer watch programs to ensure no price gouging.”
“Most importantly, Phase Two will be defined by bringing the benefits of tough economic reforms to the people. With more revenues, we can invest more in the vital needs to lift our poorest citizens out of poverty,” she added.
The President said she would invest the revenues from new taxes “in a propoor agenda that includes job creation, better education, improved health care, electrification, roads, transportation, and infrastructure.”
“As a human being, I grieve at the crushing burden of poverty that’s inflicted every day on too many of our people. Improving the quality of life of our poorest citizens is a moral imperative that motivates my work every day,” she said.
The President is expected to sign into law the expanded value-added tax measure next week, which seeks to raise the rate to 10 percent and remove exemptions on services, including power and petroleum. The VAT bill also allows the President standby authority to increase the VAT rate to 12 percent should certain fiscal conditions are met.
Under the second phase, the President also promised to improve the business climate to encourage entrepreneurship and draw more investments in the country.
She said she plans to empower the young entrepreneurs to start their own business and help generate jobs for Filipinos by giving them tools to succeed such as good education, access to seed capital, and no barriers to entry when it comes to starting to business.

Entertainers  urged to settle  tax obligations
By GENALYN D. KABILING

Malacañang yesterday encouraged taxpayers especially from the entertainment industry to settle their tax obligations to avoid possible charges to be filed by the Bureau of Internal Revenue (BIR).
Press Secretary Ignacio Bunye said there is still enough time for delinquent taxpayers to file income tax returns at the BIR in the wake of the growing number of celebrities facing multi-million-peso tax fraud suits.
“Ang aking masasabi ay may panahon pa para sa ilan sa ating mga kaibigan, maaaring hindi nila masyadong naasikaso yung pagpa-file ng kanilang income tax, ayusin na nila habang maaga para makaiwas sa ganitong problema,” Bunye said in a radio interview.
Bunye reiterated that the BIR, the government’s main revenue collecting agency, is merely doing its duty to collect taxes and run after tax evaders, adding there is no sacred cow in this aggressive campaign.
He also commended the BIR for its good tax collection performance, particularly its record high collection rate for the period of April 2005. The BIR raked as much as R62.9 billion for April, its highest-ever monthly collection owing to the uncompromising crackdown against tax evasion and the use of advanced technology in tax administration.
“We expect that in the next reporting period, the Bureau of Customs will also present an increase in their collection,” Bunye added.
Malacañang repeatedly denied it was singling out the members of the entertainment industry. BIR chief Guillermo Parayno earlier said an industry-wide audit aimed to flush out tax evaders in the entertainment sector has shown widespread violations.
The BIR has slapped a R6.76-million tax suit against television and movie actress Judy Ann Santos for allegedly underdeclaring her income in 2002.
Santos became the fourth celebrity to be sued for tax evasion after actor Richard Gomez, singer-actress Regine Velasquez, and talent manager Douglas Quijano under the BIR’s Run After Tax Evaders (RATE) program.
The BIR earlier lodged similar tax cases against fitness expert Cristina Aboitiz-Juan, cosmetic surgeon Joel Mendez, basketball star Paul Asi Taulava, former military comptroller Maj. Gen. Carlos Garcia, PT&T official Jose Luis Santiago, Francisco Motors owner Fernando Francisco, and Enrique Sobrepeña Jr. of the College Assurance Plan.

GMA visits coconut  processing plant  in Eastern Samar

HERNANI, Eastern Samar — President Arroyo yesterday took a first-hand look at the operation of the Hernani Integrated Coconut Processing Plant and Agribusiness Center, a showcase of livelihood and job creation project funded by the Office of the President under her 10-point agenda.
The President arrived here on board the presidential chopper from Guiuan where she was the principal guest of honor and speaker at the 2005 Visayas Area Business Conference at the Calicoan Resort at noon yesterday.
From Guiuan, she was accompanied by Eastern Samar Gov. Ben Evardone, Tourism Secretary Joseph Ace Durano, Agriculture Secretary Arthur Yap, and Rep. Marcelino Libanan.
Hernani Mayor Cesar G. Tagon said the President has released R10 million for the project, the first integrated coconut processing plant in this coconut producing province. It is also the biggest integrated livelihood and employment project in the whole province.
Owned and operated by the local government unit (LGU) of Hernani, the facility launched its test run operation last Feb. 1. The President’s visit here also coincided with the commercial operation of the project.
Tagon said the pioneering project is designed to improve the socio-economic conditions of coconut farmers in Hernani and the nearby municipalities by providing a ready and competitive market for their products.
Aside from providing a ready market for coconut farmers, the Hernani plant is expected to generate job opportunities, especially in its coco-coir production. Coco-coir is the raw material for various export quality handicrafts and household items.
With the operation of the Hernani project, Eastern Samar can now produce virgin coconut oil, refined cooking oil, coco-coir fiber, coco peat, coco charcoal, coco vinegar, coco soy sauce, coco laundry soap, coco meal, cotyledon jam, and coco wine.
Situated in Barangay Padang, two kilometers north of the town proper, the plant has a rated processing capacity of 10,000 nuts a day.
Aside from the President’s assistance, the Hernani project also obtained a funding and technical support from the Department of Land Reform (DLR), the Department of Science and Technology (DoST), the Technology and Livelihood Research Center (TLRC), the Office of the Presidential Assistant, Eastern Samar, the Philippine Coconut Authority (PCA), the National Electrification Administration (NEA), and the Eastern Samar State College-Salcedo.