Senate Minority Leader Franklin Drilon assailed National Economic and Development Authority chief Ernesto Pernia and called him arrogant for “pressuring” them to approve the administration's proposed tax reform package..
Pernia has been urging lawmakers to listen to and “trust” the economic team more because the senators “are not as well-versed” on the matter.
Drilon said that while he does not claim expertise, he certainly knows something about the budget.
The former Senate president said he has been scrutinizing the national budget for the past 19 years. “He’s so arrogant. Such arrogance,” Drilon shot back at Pernia.
Senate President Pro Tempore Ralph Recto said Pernia should also prove that they are experts when it comes to spending money. He said government should first prove it could spend its budget before seeking new taxes.
“First, what I can say is that in the debate, we will see if they had spent and are spending their budget for this year because if not, and the absorptive capacity is weak, why the need for new taxes? What will you do with the money if you can't spend it?” said Recto.
He also questioned the disparity between the amount of tax relief the public will get and the additional taxes they will pay.
“There are a lot of issues there, I keep on saying this. For example, what you will put in your left pocket by way of income tax reduction is P200, but in exchange, they will get P500 from your other pocket. Their net will be P300 billion. Will you win in that case?” he asked.
But Senate President Koko Pimentel expressed hope Congress will carry the Department of Finance’s proposed tax reform bill.
“That is the hope. That is what they want because that is what they submitted. If you submit something to Congress, you hope that it would pass. But of course they are also realistic, we have a system, give and take. It passes through a process and that will of the representatives of the people. You accept the will of the representatives of the people,” related Pimentel.
On the affected industries once the proposed tax reform bill is approved, Pimentel said it is not just the Business Processing Outsourcing (BPO). He said there are many current exemptions which we are lifting or erasing.
“So many are complaining. But you know, if you want a modern country, a modern society, a fairer society, we really have to have funds to improve our society,” said Pimentel.
He acknowledged though that there will be complaints in case of changes.
"If there are changes, you are enjoying the certain benefit and that is being withdrawn. You will expect that there will be complaints. If they see that this is necessary and put to good use, of course reasonable. If it will not kill your business or kill your industry then we believe that we can find an acceptable solution," said Pimentel.
Senator Juan Edgardo Angara, chair of the ways and means committee, said the imposition of higher taxes would affect the poor, as also aired by the Department of Social Welfare and Development (DSWD).
"If DSWD is opposing it, how can the Senate push for a tax package that harms the poor?" asked.
Angara and Recto said they would pass the measure but with major revisions. Under the law, tax measures should emanate from the House before they are transmitted to the Senate.
“I think we can come up with a measure in the next few months. It’s just that it may not be exactly what's being pushed by the executive,” Angara said.
Pernia had criticized the House of Representatives for passing a watered-down tax reform measure.
He warned that the planned infrastructure boom would not happen If Congress would not pass the executive’s version in full.