Higher taxes and higher inflation rates would be among the repercussions of a federal form of government if it becomes a reality in the country, senatorial candidate Juan Ponce Enrile warned.
Hosting a Facebook chat with several netizens representing rural groups, including organizations in Mindanao that would be affected by a shift to a federal system, Enrile said the transition from the current unitary form of government would require a huge budget to set up.
“In turn, this huge budget would be raised through taxation. This means the people will have to shoulder an additional tax burden,” said the former Senate President, who is looking to return to the upper chamber via the May 13 elections.
Noting how the first Tax Reform Acceleration and Inclusion Act or TRAIN 1 “has already encumbered the Filipino consumer,” especially in depressed rural areas, Enrile stressed that the situation will be “further aggravated” if TRAIN 2 reaches the Senate, and if the power to tax is granted to the federated regions in the proposed federal Constitution.
“It will likely heighten the already high inflationary rate hitting the country. Inflation is an economic scourge to the people. It erodes their purchasing power,” he said.
“This is especially true to the low-income sector of society. The heightened inflation lessens their capability to secure the essentials they need to support their families,” Enrile added.
The 94-year-old politician made these assertions when a netizen asked him why he was throwing his hat into this year’s senatorial race at this late stage of his life and career.
Enrile replied that the proposed shift to a federal system was his primary reason for running for senator.
“I have studied the proposed Constitution very carefully. Pardon my saying this, but I am probably the only candidate for the Senate in the upcoming senatorial elections who studied the proposed federal Constitution and can clearly enlighten the people on its dangers and weaknesses,” he said.
“I posted the entire draft of the federal Constitution on my Facebook page. It contains provisions that may, in my view, endanger the security and freedom of the people. I cite as an example the transitory provisions, which are in Article XXII of the federal Constitution,” the former senator said.
Enrile noted that if elected, he would like to review the tax system again to find a way to ease the suffering of the less-fortunate members of society.
“The problems I mentioned are not being discussed publicly. It is important and necessary for the people to clearly know and understand the impact of those problems on them and their families so that they can make a well-informed, well-reasoned, and wise decision when the proposed shift to federalism is presented to them in a plebiscite for their approval,” he said.