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By Darwin G. Amojelar, Reporter
THE rice-price crisis and the continuing surge
in oil prices pose big threats to the Arroyo administration to
sustain past gains in the government’s fiscal situation. These
achievements are endangered by Filipinos who do not pay enough
taxes, a report from the National Statistical Coordination Board.
In 2006, the Philippines received commendations
from the US Chamber of Commerce for fiscal management, with Fitch
credit-rating firm upgrading its outlook on the country’s
foreign-currency and local-currency ratings from negative to stable.
The government had targeted to balance the
budget by 2010, then advanced the plan to this year when the economy
got rosier than expected. But recently, President Gloria Arroyo was
quoted to have hinted that the government was unlikely to meet the
goal this year because of the rice-price crisis.
Romulo Virola, secretary general of the national
statistical board, said the efficiency and effectiveness of tax
collection, the honesty and sense of responsibility of the taxpayers
and the social conscience of tax evaders will surely all be factors
in sustaining the gains that the government achieved in the past
years.
Low tax-to-income ratio
Virola added that the Philippines had a
tax-income ratio of only 1.8 percent in 2003, which seemed very
small, an indication that “we as a people possibly do not pay
enough taxes.”
Among the regions, the lowest tax-income ratio
in 2003 came from Autonomous Region in Muslim Mindanao, Davao and
the provinces of Cotabato, Sultan Kudarat, South Cotabato and
Sarangani.
Virola said that the Family Income and
Expenditures Survey of the National Statistics Office shows that no
group of workers pays more than 5-percent tax with the tax-income
ratio ranging from 0.7 percent among farmers, forestry workers and
fishermen to 4.3 percent among professionals.
Officials of government and special interest
organizations and corporate executives pay taxes equivalent to 2.5
percent of their total income.
The survey asked questions on taxes paid by the
respondents. The tax data that it captured include income tax paid
by all members of the family, real-estate tax, car registration,
toll and driver’s license fees and other direct taxes.
“But isn’t the 4.3 percent tax paid by
professionals too low? In fact, in Region 12, the professionals paid
only 1.8 percent tax, even lower than the rate paid by clerks,
technicians and associate professionals and the group of service
workers, shop and market sales workers. Are they too shy about the
taxes they say they pay or are they overestimating their income,
maybe?” Virola asked.
By industry classification of employment of
household heads, he said the tax-income ratio for 2003 was 0.7
percent for agriculture, fishery and forestry; and 2.2 percent for
both industry and services.
“Similar figures were true for 2000. This is
consistent with the observation made that workers in industry may be
undertaxed or may be underpaying taxes compared to those in
services,” Virola added.
The four highest tax-paying provinces in 2003
were Cavite, Cebu, Laguna and Rizal, the same top payers in 2000.
By industry group of employment of the household
heads, Virola said the services sector contributed almost 70 percent
of taxes collected while the agriculture, fishery and forestry
sector contributed less than 10 percent.
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