Oxfam Pilipinas calls for wealth tax as richest Filipinos own more than bottom half

Implementing a wealth tax could benefit the Philippines as the country’s nine richest have more wealth than 55 million Filipinos making inequality more pronounced in the country, a recent report released by Oxfam revealed.

Citing data from the Forbes’ Billionaires List, Oxfam Pilipinas said inequality in the country is “starker”, with the number of Filipinos worth $5 million or P278.24 million up by 43.5% in the past 10 years.

“Inequality experienced in the Philippines is starker with the nine richest Filipinos having more wealth than the bottom half of the population,” Oxfam Pilipinas executive director Erika Geronimo said in an emailed statement.

The 2022 Forbes Billionaire’s List estimates the country’s nine richest to have a cumulative wealth of $32.7 billion — Manuel Villar with $8.3 billion, Enrique Razon Jr. with $6.7 billion, Henry Sy Jr. with $2.8 billion, Andrew Tan with $2.8 billion, Hans Sy with $2.6 billion, Herbert Sy with $2.6 billion, Harley Sy with $2.4 billion, Teresita Sy-Coson with $2.4 billion, and Elizabeth Sy with $2.1 billion.

READ: Sy siblings continue to top Forbes’ Philippines’ 50 Richest 2022

“It is quite disheartening to see many are dying due to lack of health care or are experiencing hunger amid high cost of food while the rich increased their wealth during the pandemic,” Geronimo said.

Inflation clocked in at a fresh 14-year high of 8.1% in December 2022, with vegetable prices growing at the fastest rate since 1999. Inflation for the bottom 30% income households stood at 7.9%.

Geronimo is advocating for a wealth tax, which she said could raise $3.8 billion annually, and increase the country’s health budget by 40%.

“Taxing the super-rich and big corporations is the door out of today’s overlapping crises. It’s time we demolish the convenient myth that tax cuts for the richest result in their wealth somehow ‘trickling down’ to everyone else,” Geronimo said.

“Forty years of tax cuts for the super-rich have shown that a rising ride doesn’t lift all ships — just the superyachts,” she added.

Oxfam is calling on governments to implement one-off solidarity wealth taxes and windfall taxes to end crisis profiteering, and permanently increase taxes on the richest 1%.

“Tax the wealth of the richest 1% at rates high enough to significantly reduce the numbers and wealth of the richest people, and redistribute these resources. This includes implementing inheritance, property, and land taxes, as well as net wealth taxes,” it said.

For his part, Finance Secretary Benjamin Diokno last year said he has no objection on the proposed wealth tax, but the measure would have to be passed first by Congress. —KG, GMA Integrated News