Charles Teves
For the Philippines to fulfill the principal and interest payments it incurred in debt during the apex of the pandemic, the succeeding administration may need at least P326 billion in new revenues each year.
Albay Rep. Joey Salceda suggests a tax policy reform through “smart, efficient tax and economic policies to address this debt overhang.”
“Unless we can raise that kind of revenue, we will have to downscale our public spending or borrow again to pay the debt … And of course, the P326 billion figure relies on current interest rates. To keep them at this level, we need to show our creditors we are in good fiscal standing. So tax policy reform is really our best option,” Salceda said on Monday.
The lawmaker said the government is burdened by P144 billion in principal payments for the next 20 years, and P181 billion in interest payments.
“That will, of course, vary per year, and some years will need lower debt than others. But if you want to stretch out the payment schedule, that’s the kind of fiscal space you need to cover the COVID-19 debts without incurring budget cuts,” Salceda said.
He advised that president-elect Ferdinand Marcos Jr. could use his allies in Congress to “enact smart, efficient tax and economic policies to address this debt overhang.”
“It’s the biggest election victory since 1961, so I think there is plenty of political capital for difficult but necessary reforms,” the lawmaker said.
“You need money for the most important campaign promises: cheaper rice, more efficient government services and improved agriculture. So, I would suggest quick and effective fiscal measures being undertaken in the first 100 days,” he added.
Salceda wants to see the digital environment get taxed more. The industry grew by 16 percent during the health crisis.
“Tax revenues from digital sources have remained practically unchanged, based on BPI numbers. We can do that on both the policy side and the tax administration side,” he said.
Karen Davila and other netizens gave their take on the matter.
Serious business ahead for the next administration. https://t.co/rf1uN1dOkH
— Karen Davila (@iamkarendavila) May 17, 2022
Yet the presumptive president is missing again instead of laying out the economic recovery plan. Well everything need to be faked to be perceive as "good man".
— Mois3sFork (@MoisesFork) May 17, 2022
Sana kasama sa activities nila to raise funds to pay back the 12 or 13 trillion peso loan.
Sabi ni joey salceda, mga 326 billion pesos kailangan.
Yan ang legacy…. https://t.co/FknebIze2p
— Papampodi – LENI PA RIN! (@Papampodi1) May 17, 2022
https://twitter.com/fluffeia/status/1526562278564589568?t=LehSA2XtTXl1Htd-OcgKFg&s=19
13 trillion debt? better philippines my foot lmfao https://t.co/5lnwYj3eU3
— 지지 (@marktaroism) May 17, 2022
Wooahh see how that 203 billion debt ni marcos can help the philippines sheesh https://t.co/eLkgxUnRUd
— Quinlan (@SageJiee) May 16, 2022
