The present administration of President Benigno S. Aquino III rejected yesterday a bill filed in the House of Representatives that seeks to lower the taxes paid by fixed-income earners, saying the administration could not risk losing the gains of the robust economy.
In a text message by Finance Secretary Cesar Purisima writte to presidential spokesman Edwin Lacierda, he was quoted as saying “We cannot put our fiscal sustainability and credit rating at risk by doing piecemeal revenue reducing legislation,” Finance Secretary Cesar Purisima wrote.
The finance secretary added further that “We urge Congress to approach fiscal reform from a holistic standpoint with the goal of making the structure more buoyant, equitable, progressive and competitive,” Purisima said.
The fiscal reform of the Aquino administration would allow the government to continue increasing investment in the people and infrastructure, which is crucial to national competitiveness and ability to attract investments and job opportunities.
According to Finance Secretary Purisima, the statement was issued in reaction to the bill authored by Marikina Rep. Miro Quimbo, chairman of the House ways and means committee, seeking the passage of a measure lowering the income taxes of private and government employees.
In a previous report posted by major newspapers in the country, the BIR through commissioner Kim Henares released an estimates that it would cost the government at least P29 billion in lost revenues in case the bill is passed in the Philippine Congress.