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Presidential bets to push text, ‘sin product’ taxes


Three presidential aspirants on Monday said that if they get elected, they would raise taxes on so-called sin products such as tobacco and put a levy on text messages to raise revenues and plug the state's widening budget gap. Administration bet Gilberto Teodoro Jr. and environmentalist Nicanor Perlas told the Foreign Correspondents Association of the Philippines the state should zero in on products that harm health and the environment. Senator Richard Gordon, for his part, reiterated his push for a tax on short message service (SMS). On the other hand, survey frontrunner Senator Benigno "Noynoy" Aquino III said he would rather improve tax administration by going after smugglers. Teodoro said the government needs more money to address the damage of an extended dry spell brought by El Niño. "If we need to raise taxes [we will] because even if you improve tax collection efficiency, it might not be enough to fuel growth or to have the safety nets required to help the poorest of the poor," he said. Teodoro noted that since income and corporate taxes are already high, he would seek specific taxes on sin products and expand the value-added tax. Meanwhile, Gordon said it would be "hypocritical" for the incoming administration to promise not to impose new taxes given the government's widening budget deficit. He made the statement right after Aquino said he preferred improving tax administration. "It is not right to raise new taxes at this point in time when you are not collecting taxes properly," said Aquino, the Liberal Party's standard bearer. Gordon said the state has a big revenue opportunity from the more than three billion text messages sent by Filipinos daily. Meanwhile, presidential bets Senator Jamby Madrigal, evangelist Eddie Villanueva, and Ang Kapatiran’s JC delos Reyes also promised not to introduce new taxes. Former President Joseph Estrada confirmed his attendance at the Focap forum but failed to show up. Organizers said he was in Davao City. Business tycoon Senator Manuel Villar of the Nacionalista Party also failed to make it since he was still in Hong Kong. — NPA, GMANews.TV

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