Atin Ito First Filipino Community Newspaper in Ontario
There are no plans to impose new taxes this year.
Finance Secretary Ralph Recto stressed this in a briefing on Jan. 24, 2024, as he cited inflationary pressures.
“When you impose taxes, that is also inflationary. So, I don’t think now is the time to impose [new taxes],” the new Finance chief said.
The DOF will also move to temper tax increases, such as the proposed Motor Vehicle Road User’s Tax (MVRUT) that seeks to increase charges levied against motor vehicle owners under the current Motor Vehicle’s User Charge (MVUC) or what is commonly known as the road user’s tax.
In moving to temper road user’s tax, the DOF recognizes that motor vehicle owners are already burdened with a lot of taxes. Apart from road user’s tax, motorists are also levied with excise taxes and value-added tax on oil; and excise taxes, duties, and VAT on vehicles.
Add this increase in road user’s tax under the proposed MVRUT—ranging from ₱2,080 to ₱10,400 for passenger cars, depending on the gross vehicle weight— and that would be a burden too heavy to handle at this time, especially in the current economic environment.
So, the pronouncement that there will be no new taxes this year and the move to temper tax increases is an assurance that brings huge relief for millions of Filipinos, who continue to feel the brunt of the Covid-19 pandemic.
As we all try to rise from the ashes of the pandemic, which remains a factor in these inflationary pressures, the least we need now are new taxes.
We hail Secretary Recto and the Department of Finance for vowing not to impose new taxes. We express hope that this will reverberate in the halls of both houses of Congress for the sake of the suffering Filipinos.
There’s no doubt that taxes are vital for the economy. They are necessary to finance government services and help fund public spending to boost the economy.
But while these are necessary, this is not the time to impose new taxes while we are still recovering from the impact of the pandemic.
Besides, we have all sorts of taxes already.
The problem, however, lies in the taxpayers and tax collectors.
Some taxpayers do not pay the right dues, while some tax collectors do not do their jobs well.
For tax collection to be efficient, both taxpayers and tax collectors need to play their respective roles to the hilt.
*****
Credit belongs to: www.mb.com.ph
