Taxes

Are you in favour of scrapping the reformed value added tax (RVAT) and other regressive taxes that unduly burden the people? Will you work for a progressive taxation program?

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Value-Added Tax Reform Law (RA 9337, or RVAT Law) implemented since November 2005:

• Increased VAT rate from 10% to 12%, paid by all Filipinos rich and poor
• Corporate income tax rate decreased from 32% to 30% (only temporarily raised to 35% in 2006-08)

Because of RVAT Law:

• Filipinos paid P363.0 billion in additional taxes over the period 2006-09 (DOF)
• In effect, each Filipino 15 years old and over paid the government P6,025 in additional taxes in 2006-09 (IBON computations on DOF data)
• Meanwhile corporations will pay P15.9 billion less because of the lower corporate income tax rate of 30%

While revenues are lost, uncollected or foregone due to corruption and investor-biased policies:

• Uncollected corporate taxes – P82.0 billion (2006, NTRC)
• Uncollected VAT – P56.9 billion (2002, NTRC)
• Foregone revenues from smuggling – P64 billion (DOF), P100 billion (2004, FPI), P174 billion (2004, FTA)
• PEZA tax and duty-free import incentives – P152.1 billion (2003, DOF)
• Redundant BOI fiscal incentives – P51.8 billion (2004, Reside)
• Trade liberalization (tariff cuts) – P100 billion (IBON)

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Benigno “Noynoy” Cojuangco Aquino Jr.

Liberal Party

• As senator, voted ‘yes’ to the RVAT Law (RA 9337) and so-called Sin Taxes Law (RA 9334).
• Open to imposing new taxes to address the budget deficit.

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John Carlos “JC” Gordon Delos Reyes

Ang Kapatiran Party

• Says he will lower the VAT on electricity, food and water.

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Joseph “Erap” Ejercito Estrada

Partido ng Masang Pilipino (PMP)

• Has no record of pushing for progressive taxation even when he was president.

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Richard Juico “Dick” Gordon

Bagumbayan-Volunteers for a New Philippines  (B.Bayan-VNP)

• Authored the Sin Taxes Law imposing taxes on commodities such as cigarettes and liquor

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Maria Ana Consuelo “Jamby” Madrigal-Valade

Independent

• As senator, voted against the RVAT law and other tax measures.

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Nicanor Jesus “Nicky” Pineda Perlas III

Independent

Vows to lessen the tax burden on the poor. Will review tariffs, import duties and trade agreements, eradicate corruption in tax collection and disbursement, and make sure that the neediest get the most appropriate allocations from taxes collected.

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Gilberto Eduardo Gerardo “Gibo” Cojuangco Teodoro Jr.

Lakas ng Tao-Kabalikat ng Malayang Pilipino (LAKAS-KAMPI)

• Open to imposing new taxes, including raising the VAT from 12% to 15 percent
• Believes that government should reduce the tax burden on corporations and fixed-income earners

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Eduardo “Eddie” Cruz Villanueva

Bangon Pilipinas (BP)

• Says he wants to apply the principle of progressive taxation, i.e. increasing percentage of land taxes for increasing large holdings (to make it undesirable to have too much land while others have none).

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Manuel “Manny” Bamba Villar Jr.

Nacionalista Party (NP)

• As senator, voted ‘yes’ to the RVAT and Sin Taxes Law.

• Open to imposing new taxes.