NEDA not recommending new taxes, clarifies Malacañang

Malacañang on Tuesday said that a study suggesting that the Aquino government impose new taxes to attain fiscal stability was not done by the National Economic and Development Authority (NEDA). “That is not a NEDA study. It‘s one of the points in a series of workshops NEDA and ADB [Asian Development Bank] sponsored as an initial step in the MTPDP [Medium-Term Philippine Development Plan] process,” Socioeconomic Planning Secretary Cayetano Paderanga said in a text message relayed by spokesman Edwin Lacierda to The Manila Times.

“Several resource persons were involved and the recommendation has not yet considered the present administration‘s efforts in cost control, revenue raising and anti-corruption, yet. That’s a very preliminary point by non-NEDA resource persons,” Lacierda said.

When asked if the government will consider imposing new taxes given the report, Lacierda said, “There are no such plans. That report emanated from non-NEDA resource persons.”

Lacierda was referring to the NEDA study, “A Strategic Framework and Action Plan for Inclusive Growth.” The study was made possible with the ADB’s technical assistance.

It was in line with NEDA’s mandate since it is the economic planning agency of the national government and is in charge of preparing the next MTPDP.

The study said that the government has to impose new taxes since its tax administrative reforms are insufficient to meet fiscal balance in a sustained manner.

It added that the government’s tax efficiency requires right tax policies and rates to encourage compliance and minimize leakages. –CRIS G. ODRONIA REPORTER, Manila Times