Non-essentials?

CTALK By Cito Beltran (The Philippine Star), November 18, 2016

The Department of Finance (DOF) is recommending the scrapping of non-essential privileges or discounts given to senior citizens such as discounts on airfare, hotels, with Secretary Sonny Dominguez calling it “a small sacrifice” to fund nation building. Most senior citizens have paid their dues and done their part in nation building, stop trying to continue building the nation on their backs and at their expense!

Whose bright idea was it to ask senior citizens to make the “small sacrifice” of giving up their 20% discount privilege or VAT exemption for the sake of nation building? Although DOF Secretary Sonny Dominguez has passionately pitched his plea, I don’t believe the “small sacrifice appeal” was his original idea. Something tells me that certain lobbyists fed the idea to the people around Secretary Dominguez and they in turn sold him the idea. It is also possible that this is the DOF’s way of getting back what the SSS has to pay out for the P1,000 monthly increase for their pensioners.

I surmise that the think tank that Secretary Sonny Dominguez is relying upon for guidance are probably income earning executives or experts with various sources of income in terms of consultancies, teaching positions or people who’ve earned and saved enough money not to be dependent on discounts and assistance from government. As I have always said: people make decisions (and presumptions) based on their economic status, but not the limited financial reality of retirees and pensioners or senior citizens who take advantage of every peso and centavo they can save. Don’t make the Duterte Administration the epitome of “An Indian Giver.”

To be honest, I once thought that all the privileges or discounts extended to senior citizens were a bit much and actually ate up part of the limited earnings of restaurants, airlines etc. But that was because I saw things from my perspective and not from the many Lolos and Lolas who no longer have jobs, can’t get jobs because of their age (not competence) and have no income but want to keep their dignity and refuse to ask money from their kids. They paid taxes for decades and in reality they never got much for that because they also had to pay for every transaction they had with government offices.

The knuckleheads at the DOF should pay closer attention to the fact that the SSS was FORCED to give in on the issue of increasing monthly pensions by P1000 because it already became a political issue. It was not a matter of getting more, but pensioners NEEDING MORE money to survive, because of inflation and uncontrolled price increases in ESSENTIAL goods such as electricity, fuels and food, as well as bus and plane fare! And no it is not about rich or poor but a right given to senior citizens. In my travels around the country, I have seen a number of senior citizens who have to fly or go by boat in order to seek medical treatment. The hotels that the DOF have in mind are not in the same league as hotels the elderly go to but where a discount is a discount!

The DOF also pushed the argument that the discounts only favor the rich and not the poor. So you will punish the poor along with the rich by taking away the discounts and exemptions? You will bite your nose to spite your face?

If anyone should be cutting back on their collections it should be the government. The government is not a customer of the restaurants or the airlines and yet the government is always the first to make a profit through tax. The last time the government imposed multiple taxes on airline companies, they all left and are now based or are using Taiwan and Thailand as their regional hub instead of Manila! To date we have not managed to woo them back. There was a time when major car manufacturers had to choose between the Philippines and Thailand as their manufacturing center, but because the government prioritized collections over concessions, we lost out in terms of jobs, taxes and business competitiveness. The tragedy is in spite of all the tax money collected in the past, the country has very little to show for it.

If senior citizens get the 20% discount, they at least bring business, help sustain operations, keep businesses going and are part of the “operating chain” as consumers, guests or passengers. The government is a virtual free loader since it collects taxes and fees at various parts of the business process but does not directly invest or bring business. The fact that homeowners, stores and restaurants have to hire their own security guards shows that government makes no appreciable contribution. The business owners and companies are the ones making the sacrifice or taking the cut. Government wants to get in between business and senior citizens and grab what isn’t theirs! Butt out!