A labor group is pushing for the imposition of additional tax for the rich to help pay for the country’s whopping P102-billion pandemic response debt.
This after Finance Secretary Carlos G. Dominguez III proposed during the weekend the removal of all exemptions from value-added tax payments to help pay for the expense of the government for the over-222 million novel coronavirus disease (Covid-19) shots it procured.
Officials and members of the Sentro ng mga Nagkakaisa at Progresibong Manggagawa (Sentro) rejected the proposal for being unjust especially for the poor who they said are still reeling from the effects of the pandemic.
Instead of the tax measure, it urged the Department of Finance (DOF) to first study imposing a “wealth tax.”
“At this present moment, where many of us are recovering from economic shock and are still economically vulnerable, added taxation should be levied on those that can afford to pay their just share in our country—such as the rich and top income earners,” Sentro said in a statement issued last Sunday.
It challenged the rich “to contribute proportionally” in paying for the country Covid-19 related debt.
“After decades of having the rich and powerful flaunt their wealth, abuse connections, and circumvent laws with impunity, it is time to demand that they pay their fair share in our country,” Sentro’s statement read.
As early as 2020, Sentro as well as other members of the Nagkaisa labor coalition have been pushing for the imposition of a “solidarity tax,” wherein it will impose additional taxes for shares of stocks; bank deposits; securities (domestic); cash; as well as land and real estate.
The labor groups estimated the government could generate P316.55 billion of revenue if it would just tax at least 1 percent of the estimated P31.66 trillion worth of wealth in the country per year.
They proposed a “rank-based approach,” which will be based on the total net worth of an individual, in the implementation of the “solidarity tax” to make sure only the wealthy will be covered by it.
Last month, House Committee on Ways and Means Chairman Joey Sarte Salceda said the replacement to President Duterte needs tax the rich so that government would have enough funds for debt payments and adequate social services. (See “Next prex must tax the rich to fund services–Salceda,” in the BusinessMirror, Feb. 01, 2022, B3 / https://businessmirror.com.ph/2022/02/01/next-prex-must-tax-the-rich-to-fund-services-salceda/)