Netizens react to PH Government’s move to raise taxes amid national economic crisis - TrueID

Netizens react to PH Government’s move to raise taxes amid national economic crisis

DailypediaOctober 6, 2022

Filipinos are more worried than ever for their livelihood after the Government announced the need for further revenue collection of existing taxes as the national debt hit the P13-trillion at the end of last month.

The Bureau of the Treasury (BTr) said that the total outstanding debt increased by P133.64 billion, which got incurred in August. All the months leading up to the end of August had a debt stock increase of P1.29 trillion or 11 percent.

At the end of July, the debt stock increased by 1.3 percent, which could attribute to local borrowings that made up 69 percent or P8.94 trillion.

“For August, the increase in domestic debt resulted from the net issuance of government securities amounting to P109.43 billion and the P1.78 billion impact of local currency depreciation against the US dollar,” the BTr said.

“Since the beginning of the year, the domestic debt portfolio has increased by P772.98 billion or 9.5 percent due to continued reliance on domestic borrowing to lessen the impact of currency fluctuations.”

Many disapproved of Pres. Bongbong Marcos’s recent trip to Singapore while the country drowns in taxes.

Michael Ricafort, chief economist at the Rizal Commercial Banking Corporation, also said that foreign borrowings represented 31 percent of the total at P4.08 trillion.

“In view of large debt incurred of more than P5 trillion since the pandemic started in 2020, the new administration may still need to further intensify tax revenue collections based on existing tax laws, come up with new tax reform measures, increase tax rates, among others to further boost structural sources of government revenues,” he said.

He added that the Government could adopt a “more disciplined spending” with usage of fiscal reform measures like dealing with corruption and better monitoring of public funds.

“All of [these] would help further narrow or improve the budget deficit and, in turn, slow the growth in the national government’s outstanding debt, as well as better prepare for eventual payment of the large borrowings incurred during the pandemic as they fall due in the future,” he said.

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