Economist doubts Duterte's tax reform bill pro-poor 

An economist on Wednesday expressed doubts that the Duterte administration's proposed tax reform package will really benefit the poor.

In a 24 Oras report by GMA News' Sandra Aguinaldo, Winnie Monsod said though the Philippines needs a tax reform, the administration's proposed tax reform package, when passed "in full," will directly hit individuals who earn P19,335 and below every month.

"Doon sa last column nakikita na 'yung reduction in income as a result of the tax, nakikita natin 'yung first six deciles, 'yung pinakamahirap sa atin is going to be negative. Huwag niyo kaming gogoyoin na ito'y pro-poor," Monsod said.

Monsod also emphasized that the supposed cash transfers from the government will only be effective for four years.

"Bibigyan namin ng pera itong mga dehado, bibigyan namin ng transfers... 3,000 para sa first five deciles and 1,500 for the next two deciles. May catch. 'Yung transfers na ito is only for four years," she said.

"Ang iniisip ng Department of Finance by four years, the poor will already be used to it. So they will change their behavior," Monsod added.

The proposed tax reform, which President Rodrigo Duterte wants Senate to prioritize, is aiming to lower income taxes while limiting VAT exemptions, adjusting excise taxes on oil and automobiles, and imposing new taxes on sugar- sweetened beverages (SSBs).

The Finance Department is proposing a P10-per-liter excise tax on SSBs. Under the existing proposal, a one-liter bottle of soda will increase by P11 or from the current P27 to P38. Sachets of powdered drinks, such as juice and 3-in-1 coffee, are projected to increase from P9.75 to P20.75.

Meanwhile, Budget Secretary Benjamin Diokno insisted that the tax reform is "pro-poor."

"The appropriate way to look at this is to look at the tax side and the spending side. Saan ba namin gagastusin ang perang 'yun? It will be pro-poor," Diokno said.

Finance Undersecretary Karl Chua added, "Ibabalik naman natin ang lahat ng makokolekta natin sa mga taong-bayan. Ang mga ito ay sumusunod... infrastructure, education, health, social protection at housing."

Some senators, on the other hand, already expressed apprehension over the bill. —Anna Felicia Bajo/KBK, GMA News