Rejected tax cut irks workers

MANILA, Philippines - Workers are angry at President Aquino’s decision to throw out a proposed tax cut for fixed-income earners.

Aquino’s action shows that he was never an ally of workers, the Partido ng Manggagawa (PM) and Trade Union Congress of the Philippines (TUCP) said in separate statements.

PM chairman Renato Magtubo said workers were not surprised with Aquino’s announcement since he has always sided with the business community during past dialogues with labor leaders.

PM agrees with the view of the Tax Management Association of the Philippines (TMAP) that the expected revenue loss of P30 billion is equivalent to only two percent of the Bureau of Internal Revenue (BIR)’s total tax collection of P1.335 trillion, he said.

“By making the P30 billion a non-negotiable bottom line, President Aquino simply views taxation as a tool for revenue generation and not as an equalizer or instrument for social justice,” he said. “Counter-posing tax exemption and VAT resolves nothing.” 

PM’s long-held position is that high-income corporations must pay more and those whose income fall below the prevailing cost of living must be exempt from direct tax, Magtubo said.

TUCP spokesman Alan Tanjusay said the tax cut could eventually increase the purchasing power of workers.

“We were expecting that the least he would do is to revise the figure into a compromise, if not, a phased tax cut,” he said.

“But to shoot down the entire measure outright, President Aquino has permanently sealed further the fate of workers in the hopeless dungeon.”

Aquino will be leaving a record of rejecting proposals for alleviating workers’ burden from the rising cost of commodities, Tanjusay said.

“He has not provided any relief for workers who helped build a competitive economy under his administration,” he said.

“How unfortunate can we get from a President we thought could give back.”  – Mayen Jaymalin, Delon Porcalla, Marvin Sy