VICE presidential candidate Francis “Kiko” Pangilinan underscored the need to provide financial assistance to micro, small and medium enterprises (MSMEs) and to ensure efficient tax collection as the economy moves toward recovery from pandemic.
The incumbent senator, appearing with six others at the CNN Philippines’ Vice Presidential Debate on Saturday, said the P15-billion government support to MSMEs is not enough to cover over 1 million entrepreneurs in this segment, pushing the realignment of the budget to increase it to P100 billion.
But the financial assistance in his and standard bearer Leni Robredo’s platform comes with a condition that the beneficiaries will not lay off employees or will rehire those previously let go amid the pandemic.
“Sila ang pinakamalaking employer. 90 percent of our employees or employment comes from [MSMEs]. Kinakailangang suportahan [MSMEs are the biggest employer, comprising 90 percent of the employment. They need to be supported].”
The Department of Trade and Industry, which he described as a “very professional organization,” can utilize the P100-billion fund and help the MSMEs quickly.
In addition, he said the MSME funding support will “balance” the impact of the Retail Trade Liberalization measure, which encourages more foreign investments—that could potentially compete with local players—by lowering the capital requirements.
The measure lowers the minimum paid-up capital requirement of foreign companies to about $500,000 or P25 million from $2.5 million or P125 million previously.
Pangilinan said it was important to liberalize the economy to boost its growth and employment generation.
Meanwhile, the senator pitched a more efficient system for collecting taxes to avoid revenue losses, which usually stems from corruption.
“Between imposing more taxes and having a more efficient system of collection, we would always prioritize the latter,” he stressed.
Pangilinan said an effective judicial process can deter corruption in tax collection, pointing out the need to shorten the trial period for cases.
“You have to punish swiftly the guilty,” he said. Currently, he noted that the average trial period is 6 years, and this needs to be brought down to 2 or 3 years.
With this, Pangilinan highlighted the need to increase the judiciary’s budget to better implement reforms.
“You cannot have a modern judiciary with a third-world budget,” he said. “If we can double it (budget), why not?”
The bigger budget, Pangilinan said, can be used to “fill up all the vacancies in our court system,” hire more judges and improve the benefits of court workers.
He said it was important to convene the JELAC – the Judicial Executive Legislative Advisory Council, which includes the Senate president, House speaker, Chief Justice and the President.
Pangilinan justified the need to pass Corporate Recovery and Tax Incentives for Enterprises (Create)—which lowered the corporate income tax (CIT) and reduced tax collection from companies.
The pandemic, he said, impacted both the MSMEs and big companies, stressing the need to extend assistance to both sectors in the “unprecedented” situation.
Following the enactment of CREATE, the CIT rate is reduced to 20 percent from 30 percent for domestic corporations with net taxable income of P5 million and below and have total assets of P100 million and below effective July 1, 2020. All other local firms and resident foreign companies are imposed with 25-percent income tax.
Education
Asked about platforms to improve the education system, Pangilinan said he and Vice President Robredo are ready to allot P90 billion. This will go to purchasing 1 gadget per student and provision of P300-monthly allowance for internet connection amid the remote learning setup.
He said they will address malnutrition among children by promoting food security.
Pangilinan, who previously served as Presidential Assistant for Food Security and Agricultural Modernization and chairman for Senate Committee on Agriculture and Food, raised the need to double the budget for agriculture to help farmers and fisherfolk boost their output. Eventually, he said this will lead to lower prices of food in the market.
West PHL Sea
As for the issues concerning the presence of Chinese vessels in the West Philippine Sea, Pangilinan said he is “prepared to fight for our rights over the waters of our exclusive economic zone and not be subservient.”
He wants the Philippine coast guard patrols resumed to protect the fisherfolk and allow them to improve their income.
He also stressed the need to team up with the neighbors in the region such as Indonesia and Vietnam to assert the country’s sovereignty.