VP bets outline plans for tax collection, fight vs. corruption

Vice presidential candidates on Saturday outlined their plans to improve the country's tax collection and to address the alleged corruption in government agencies.

For Senate President Vicente Sotto III, it's "digitalization."

"That is the number one answer in the Bureau of Customs," Sotto said on CNN Philippines Vice Presidential Debate 2022.

"Once we remove human intervention, we remove corruption and we improve the collection of taxes. Ganon mismo kahit sa BIR (Bureau of Internal Revenue)."

Dr. Willie Ong echoed Sotto: "Tama naman po sinabi ni Senator Tito Sotto, kailangan i-computerize [ang collection]. Alisin yung usap ng tao, sa tao diyan makukuha yung corruption," he said.

Ong also batted for the simplification of tax payment and the increase in the number of those who pay taxes.

"Ayon sa pag-aaral, parang 19% lang ang nagbabayad kaya nahihirapan yung 19%," he said. "Kung mas marami ang nagbabayad, mas magaan ito."

'Philanthropy mindset'

Ong also said it would also be helpful if Filipinos would develop a "philanthropy mindset."

"Sa ibang bansa, meron silang philanthropy mindset. Meron silang Bill Gates, Warren Buffet, ang laking pera binibigay, long-term tulong sa America," he said.

"Sa atin yung mayayaman natin parang walang philanthropy mindset. Pero kulang tayo diyan. Kung yung mayayaman sa Pilipinas gagawa ng long-term projects para ma alleviate, matulungan tayong mahihirap."

Modernized judiciary

Senator Francis Pangilinan, meanwhile, said there is a need to modernize the country's justice system in order to combat corruption.

"Again, I will have to go back to you have to punish swiftly the guilty. Hindi pupuwedeng hindi pinaparusahan ang mga nagkakasala," Pangilinan said.

He said this would only happen if the country has a "modern" justice system, noting that this will be possible if there is an increased support for the judiciary.

"In the long run you have to modernize your judiciary. You cannot have a modern judiciary with a third world budget. So we really have to increase support for our judiciary," he said.

Efficient tax collection

For economist Manny Lopez, collections of taxes should be more efficient and anyone avoiding taxes should be penalized.

Lopez vowed for a "dramatic" improvement" of the taxation system, adding that e-governance is a part of the legislative and executive agenda to improve efficiency on tax collection.

"On the other side of the coin is to make best use of taxes. This means elimination of leakages in the public finance sector. Make our project and program implementation more efficient, and there should be better auditing procedures to make sure that every tax collected from the people should be spent wisely," he said.

Tax the rich

Former Akbayan party-list Representative Walden Bello, for his part, reiterated his and his running mate Leody de Guzman's plan to tax the country's 250 to 500 millionaires and billionaires by 1-3% of their wealth to assist local farmers and the health sector, and to generate more jobs.

“This will yield about P1 trillion which would come to about 20-25% of the budget and more. Now this is quite small if you look at taxation rates in other countries, they go on top levels,” he said, stressing that the rich in the Philippines should have no cause to complain.

“Of course it is possible. One, it is a small part of their income. Two, there are many people among the rich in this country at this point, especially the younger rich, who are saying that [they] really need to be socially responsible. Three, even Joey Salceda has said that the rich now have to pay because they benefited from the pandemic,” he said.

CREATE law

Bello, meanwhile, criticized Sotto and Pangilinan for the passage of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law, saying that it was the biggest tax break in the country.

The CREATE law, signed into law in March 2021, reduces corporate income tax from 30% to 25% for corporations, and 20% for micro, small and medium enterprises.

"Ang tagal na ng agenda nila, even before pandemic, pero they used the pandemic to get what they wanted. So, Senator Sotto, Senator Pangilinan, pareho kayo ng boto sa CREATE Act that gave big tax breaks. So, what are you saying that you are not guilty of this process? Tama na ‘yang kalokohan na 'yan,” he asked the two.

Sotto said it was Congress that passed the law and asked Bello why he is only focused on them.

"When we passed laws, it is the Congress that [passes it]. Bakit pinag-iinitan mo kaming dalawa?" Sotto said, adding he'd rather not pay attention to Bello's "style."

Pangilinan, for his part, defended the passage of CREATE law, saying the measure "was a means to be able to provide support" to big companies affected by the COVID-19 pandemic.

"We voted in favor of that because we recognize na iba ang kondisyon sa ngayon because of the pandemic. Unprecedented ang bagsak ng ating ekonomiya, unprecedented ang kawalan ng hanapbuhay at trabaho. Kaya dapat unprecedented din ang kilos," he said, adding he understands Bello's concern regarding the law.

"We saw it best to provide assistance and support for companies," Pangilinan said.

Question for Tito, Kiko

On the subject of corruption, Lopez asked Sotto and Pangilinan if they are willing to prosecute a colleague involved in graft and corruption.

Pangilinan said the Senate has an ethics committee that deals with senators accused of wrongdoing. Prosecution, however, is the function of the judiciary.

Sotto echoed Pangilinan. "The answer is in the affirmative. There is a Committee on Ethics. If there is a case filed against a senator we will investigate, no matter what," he said.

Carlos Serapio, meanwhile, batted for "total system change" as the answer to corruption.

"This system has reached its point of incompetence, no matter kung ano mang subsystem o sectoral reform ang gawin, hindi po maaayos 'yan. Ang pinakasagot talaga rito ay total system change," he said, adding that the country has to transition from an old system to a new one. --Anna Felicia Bajo, Hana Bordey, Joahna Lei Casilao, Jamil Santos, Giselle Ombay/KBK, GMA News