Congress asked to pass tax reform measures
Budget Secretary Rolando Andaya is calling on lawmakers to swiftly pass several tax reform measures pending to boost government’s infrastructure programs.
In the recent budget hearings of the House Committee on Appropriations, Andaya said the tax reform measures are necessary because the capital outlay for the 2010 national budget was reduced due to poor revenue collections.
Andaya said the National Treasury can realize about P30 billion with the passage of the proposed rationalization of fiscal incentives bill and anti-smuggling amendments to the Tariffs and Customs Code.
Among pending bills are House Bill 5241 or the proposed rationalization of fiscal incentives; HB 5068 or the bill seeking to institute reforms in and strengthen the processes in the Bureau of Customs; and HBs 15, 155 and 1033 seeking to curb smuggling, both technical and outright, by providing systemic solutions that will make it easier to detect smuggling and seeks to penalize mall and store owners selling contraband products.
“Most of the time the construction of government projects are affected because of the availability of funds,” Andaya said.
Members of the House have approved on second reading the 2010 P1.541 trillion national budget.
Some P40 billion-capital outlay was cut from the 2010 national budget.
A huge chunk of the budget is being earmarked for government infrastructure projects.
Andaya said the government will have to work on available fund to finance the ongoing government projects and will have to avoid foreign borrowings.
“We cannot resort to foreign borrowings. There will come a time when our budget will be allotted for our foreign debt and the remaining portion to cover only the salaries of government employees and pay the interest of official borrowings,” Andaya said.
To avert this, Andaya said, the only option left is for the government to push for the passage of several tax measures been pending in Congress.
Andaya said certain laws has effectively reduced the government earnings of an estimated P33 billion.




