PNoy master plan a mix of more taxes, higher fees

The National Economic and Development Authority (NEDA) has unveiled the Aquino administration's master plan, seeking to achieve 'inclusive growth' through higher tax collection and increases in service fees and charges and packages of other measures. One of the many goals of the Philippine Development Plan 2011 – 2016 is to increase the tax effort to 15.6 percent of gross domestic product (GDP) "through an annual incremental 0.3 percentage point annual rise in the collection effort of the Bureau of Internal Revenue, and 0.1 percentage point for the Bureau of Customs." Another goal is to make governance reforms result in a yearly increase of 1.2 percent in non-tax revenue measures, which means fees and charges government agencies collect for service rendered will be “adjusted" to achieve “cost recovery." The plan said fees have not been adjusted since 10 years ago. In the infrastructure chapter of the plan, the administration said it will promote a “user pays culture" by implementing another form of road user’s tax that is a fuel levy. Proceeds from either measure will augment a Road Fund for the maintenance of highways and bridges. Underemployment and job mismatch Inclusive growth, according to the development plan, has been elusive because of “major gaps and lapses in governance" as well as inadequate infrastructure and levels of human development. "Inclusive growth thus requires a special focus on the working poor and the unemployed, who comprise a significant portion (43 percent) of the labor force," the NEDA said in the plan. The plan noted that the profile of the country's underemployment rate and nature of employment by class of worker have barely changed from 2005 to 2010. Underemployment has been at a “high" 20 percent while “own-account workers" comprised about 26 percent of the workforce. Some 43 percent of the jobless are considered “educated unemployed" and this situation is seen as a “symptom of the labor mismatch in the country," pushing that segment of the population to seek overseas employment. Visayas tourism in focus The economic master plan has identified “special development areas" or SDA’s for spurring growth in tourism in the Visayas. Of the eight clusters of SDAs, five will be prioritized while the remaining three are considered “emerging." The Department of Tourism crafted the Sustainable Management Plan for Central Philippines’ with the help of the Japan Bank for International Cooperation. Among the SDAs are Boracay Island, Carabao Island, the Mount Kanlaon and Northern Negros Forest Reserve, Bantayan Island, Malapascua Island, El Nido, and Puerto Princesa. The plan said the government will put together a National Tourism Development Plan which will, among others, harness social media, target overseas Filipinos and promote the country’s cultural and culinary diversity. Better ways of doing business The international trade strategy will include the opening and operation of a National Single Window to facilitate trade and improve the flow of logistics, according to the plan. A cluster approach will also be used to enhance the growth of industries nationwide. "Industry Clusters are geographic concentrations of competing, collaborating and interdependent businesses, working on a similar regional infrastructure and creating wealth of regions through exports," it said. Transfer of new technologies, creation of risk capital and attracting foreign investment are the foreseen gain of the industry cluster tack. Metro Manila and Central Visayas will be developed into health and wellness hubs, while the Cagayan Valley region will specialize in dairy and dairy products. The Cordillera Administrative Region will focus on coffee and the Ilocos region on milkfish production. — VS, GMA News