ADB advises tax breaks for card holders

THE Asian Development Bank on Monday asked President Benigno Aquino III to consider giving tax reductions to credit card holders to widen the use of credit cards in the country.

The bank’s officials made the request in a meeting with Mr. Aquino and the government’s economic managers including Finance Secretary Cesar Purisima.

Purisima said the tax reductions would give people an incentive to use their credit cards more often, and in exchange the government would have a documentation trail of all credit card purchases.

Presidential spokesman Edwin Lacierda said the proposal will be considered but will not be a priority.

“There was a particular suggestion for tax reduction for credit card holders … but that is not a priority right now,” he said.

“That is something that the President said we are looking into.”

President Aquino assured the ADB that measures to promote credit responsibility among citizens were being undertaken with the creation of the Credit Information Bureau, Lacierda said.

The bank was represented by executive directors Phil Bowen, Richard Edwards, Robert Orr, Jaejung Song, Siraj Shamsuddin, Yingming Yang, and alternate executive director for the Philippines Gaudencio Hernandez Jr. in the meeting.

Lacierda, Purisima, Socio-economic planning chief Cayetano Paderanga, and Presidential Management Staff head Julia Abad attended for the government.

Lacierda said Mr. Aquino repeated his policy of not imposing new taxes during the meeting.

“The President mentioned that we have to fix the leaks in the system first before we impose any revenue measures,” he said.

“We assured them that there have been plenty of anti-corruption efforts and we are presently collating evidences against some personalities.

“We are resolving all these land mines that we have discovered.” Joyce Pangco Pañares, Manila Standard Today