Connect with us

Hi, what are you looking for?

Stock Markets

Diokno does not favor tax hikes to tackle debt

Benjamin E. Diokno, Bangko Sentral ng Pilipinas Governor — BLOOMBERG

Philippine central bank governor Benjamin E. Diokno, who takes on a new role as finance secretary next month, said on Friday he does not favor raising taxes even as the incoming government is set to inherit a huge pile of debt.

Mr. Diokno, who is President-elect Ferdinand “Bongbong” R. Marcos, Jr.’s choice to lead the finance ministry, would rather see an improvement in tax administration and collection, including reducing corruption through digitalization, he said.

“To me, grow the economy, focus on tax administration first, improve the collection,” Mr. Diokno told ANC news channel.

Mr. Diokno’s comments should help ease concerns among labor groups, which have opposed proposals by the outgoing government to impose more excise taxes on oil, defer scheduled tax cuts, and remove some value-added tax exemptions.

Mr. Marcos on Thursday said he preferred to reduce the tax burden for those suffering from the economic impact of the pandemic.

Mr. Diokno, who before being appointed central bank governor in 2019 served as budget minister, said he was “satisfied with the current tax structure.”

The tax system has already undergone reform in the past six years after incumbent President Rodrigo R. Duterte’s government lowered corporate and personal income taxes while raising levies on tobacco and alcohol products.

The new Marcos administration is inheriting P11.7 trillion ($224 billion) in government debt, equivalent to 60.5% of gross domestic product as of the end of 2021, the highest ratio in 16 years, fueled by borrowing to address the coronavirus disease 2019 (COVID-19) pandemic.

The debt level was almost double the P6.4 trillion of liabilities when Mr. Duterte took office in June 2016, government data showed.

“I am not worried about the level of the debt,” said Mr. Diokno, who sees it as “easily manageable” as long as the economy is able to return to a pre-pandemic annual growth rate of 6% to 7%. ($1 = P52.26) — Reuters

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Stock Markets

YORDENIS Ugas celebrates with his team after defeating Manny Pacquiao in a world welterweight championship bout at T-Mobile Arena. — REUTERS By Michael Angelo...

Stock Markets

PHILIPPINE STAR/ MICHAEL VARCAS SAO PAULO — Brazil’s federal health regulator Anvisa on Saturday suspended the use of over 12 million doses of a...

Stock Markets

CSC.GOV.PH The Office of the Ombudsman is open to revising a circular that restricts public access to the net worth statements of government officials,...

Stock Markets

THE GOVERNMENT has partnered with grocery operator Puregold Price Club, Inc. on a program that will offer cheaper frozen meat products to consumers. Under...

Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Captain Of Success. All Rights Reserved.