IS a compromise deal between the government and tobacco firm Mighty Corp. regarding its tax liability in the offing?
That’s possible, if we’re to go by public statements from finance and justice officials.
No less than President Duterte had floated this idea before, as he thinks it’s wise to settle now than pursue a long-drawn tax case. He could be right.
We tossed some possibilities on how the total tax due of P36.5 billion (P9.56 billion plus P26.93 billion) could make an impact on the lives of ordinary Filipinos.
With P36.5 billion, the government could easily bankroll the construction of more hospitals and schools not only in Mindanao but also in the Visayas and in some parts of Luzon.
The administration can build 36,500 single-story classroom buildings with adequate toilets. Or 1,200 two-story public hospitals with 25-bed capacity.
It can construct 58,873 kilometers of paved provincial roads. Alternatively, it can erect 457,600 lineal meters of concrete revetment for flood mitigation.
With the amount, the government can employ an additional 137,200 teachers with a salary of P19,000 per month for 14 months. The money could also pay for the hiring of more teachers, police, soldiers, doctors and nurses.
In fact, P21 billion from the total tax due could be used to finally achieve the ideal ratio of one public nurse per barangay for a total of 32,000 nurses. Some P14 billion from it could fund the procurement of medicines and treatment of poor patients.
According to the Department of Health, for every P1-billion tax due collected, the government could pay for the treatment of 70,000 patients.
The list of key social development and public works projects that could be quickly funded from the P36.5-billion tax due of Mighty Corp. is endless.
The government’s tax claim is staggering, as it even eclipses the projected initial tax take of P31 billion from motor vehicle excise-tax reform.
What is important is that the government should make the most out of this deal for the benefit of the Filipino people.
China’s ‘One Belt, One Road’ project
The two-day Belt and Road Forum opened in Beijing last Sunday (May 14) to showcase Chinese President Xi Jinping’s foreign policy project, the Belt and Road Initiative, a multibillion-dollar plan to build ports, railways and other facilities.
Also known as “One Belt, One Road” after its two main components: the Silk Road Economic Belt and the 21st Century Maritime Silk Road, the project aims to revive ancient trade routes from Asia to Europe and Africa. It covers some 65 countries representing 60 percent of the global population and around a third of global GDP. China Development Bank alone has earmarked $890 billion for some 900 projects.
China touted the forum as the major international event of the year, with no less than 1,200 people in attendance. Among them were 29 heads of state or government, including Russian President Vladimir Putin and Duterte, as well as heads of international organizations, such as UN Secretary-General António Guterres, President of the World Bank Jim Yong Kim and Managing Director of the International Monetary Fund Christine Lagarde.
“Spanning thousands of miles and years, the ancient silk routes embody the spirit of peace and cooperation, openness and inclusiveness, mutual learning and mutual benefit,” Xi said in his opening speech.
“We should foster a new type of international relations featuring win-win co-operation; and we should forge partnerships of dialogue with no confrontation and of friendship rather than alliance.”
The China-Europe Railway Express, for instance, will connect 27 Chinese and 28 European cities, with freight trains that offer shorter transport time than sea routes. A planned 418-km rail line between China and Laos attempts to be the first overseas route that connects with the vast rail system in China. Another 873-km, high-speed railway project between China and Thailand will link the Chinese border to Thailand’s ports.
For the 10 members of the Asean, the initiative will help address its infrastructure deficit, and enhance industrial development. While the formation of the Asean Economic Community in 2015 brings Southeast Asian economies together as a single market and production base, the One Belt and Road initiative will facilitate further integration by developing physical infrastructure and encouraging a robust trade regime, since the region is ideally positioned at the center of global value chains.
E-mail: ernhil@yahoo.com.