STRESSING that the country’s economy has been roughly shaken by the coronavirus disease (COVID-19) pandemic, Senate President Vicente Sotto III has filed a measure seeking to establish an economic stimulus strategy that will help spur the country’s growth and development in the aftermath of the health crisis.
In filing Senate Bill No. 1542, Sotto said the government will need P548 billion for this year and another P80 billion to sustain post-COVID programs until next year to the country’s economic base from collapsing.
“Our situation could get worst if our government will not act swiftly. Lawmakers need to work fast in giving back life to our economy. We cannot dilly-dally until the last minute. Measures to help revive businesses adversely affected by the COVID-19 crisis should be enacted with haste to prevent the economy from total collapse,” Sotto said.
SBN 1542 proposes a stimulus program to “restore economic growth, maintain employment levels, and expand the productive capacity of the country.”
It’s salient features include mandatory immediate mass testing for COVID-19, wage subsidies to non-essential businesses, freelancers, self-employed and repatriated overseas Filipino workers (OFWs); expansion of the Tertiary Education subsidy provided under Republic Act 10931 to include students whose families are now facing financial difficulties due to the various community quarantines, and waiving of registration and other related fees and the grant of special trading accommodations for a limited time to micro, small and medium enterprises plus start-ups (MSMEs+).
Also included in the stimulus package are assistance to be given to the tourism and transportation industries, importers and exporters, agri-fisheries sector, and enhanced “Build, Build, Build” projects of the transportation and public works departments.
Sotto said government needs to put a premium in rebuilding the economy once current strict community quarantines are relaxed.
“In order to offset and mitigate the damages that COVID-19 brought to our country, measures should be put in place through legislative enactments. Since the intent of the Bayanihan to Heal as One Act is to cushion the effects of COVID-19 to the country’s health system and to its citizens… it did not cover the economic effect of this pandemic,” Sotto said as he pushed for the immediate approval of his proposed measure.
The measure likewise directs the Land Bank of the Philippines and the Development Bank of the Philippines to establish a Special Interest Free Loan Fund and provide interest-free loans to non-essential businesses and MSMEs+.
Sotto also wants the Department of Tourism (DOT) and its sub-agencies to assist critically impacted DOT-accredited tourism enterprises.
Sotto said it is up to the country’ economic managers where to get funding for the stimulus package. He said the funding requirements could be sourced through loans since the country has a good credit standing.
The House of Representatives on Tuesday approved at the committee level three COVID-19 response measures including a P1.3 trillion economic stimulus package that will be in effect until 2023.
Under the House measure, P568 billion will be allotted for different programs this year, while an additional P10 billion for mass testing and P25 billion for loans for MSMEs will be set aside for 2021. Another P650 billion budget for the enhanced implementation of the government’s “BBB” projects is also considered which shall be included in the budget for three years starting 2021 to 2023.
PRIORITY MEASURES
The Senate said five priority measures are likely to be passed before Congress takes a sine die break starting June 5.
Sotto said the priority measures include the Corporate Income Tax and Incentives Reform Act (CITIRA), which is still in the period of interpellations; the Expanded Solo Parents Welfare Act which is also still in the period of interpellations; the Act Creating Coconut Farmers Industry Trust Fund (coco levy fund) which has yet to be sponsored in plenary; the Medical Scholarship Act, also still up for sponsorship; and amendments to the School Calendar Act, which is pending at the committee level.
The CITIRA was certified as urgent by President Duterte on December last year. Finance Secretary Carlos Dominguez III has urged the Senate to pass the CITIRA to attract investors and help the Philippines recover from the negative economic impacts of the COVID-19.
The CITIRA seeks to rationalize tax incentives currently being enjoyed by industries and gradually lower the corporate income tax from 30 percent to 20 percent over the next 10 years.
The Expanded Solo Parents Welfare Act seeks to expand the benefits and privileges of single mothers and fathers and their children in a bid to ease the burden of millions of present-day single parents by giving them discounts on certain products and services.
The coco levy fund aims to distribute taxes collected from coconut farmers during the Marcos administration to its rightful beneficiaries. President Duterte has vetoed a similar measure February last year for being “violative of the Constitution” and for “lacking in vital safeguards.”
The Medical Scholarship Act seeks to establish a medical scholarship for deserving Filipino students in state universities and colleges and in private higher education institutions in regions where there are no SUCs offering medicine. The scholarship grant will cover tuition fee and other school expenses, including internship, medical board review, and licensure fees.
The amendments to the School Calendar Act seeks to defer the opening of classes from the approved opening on August 24 to September this year or any month as may be determined by the President to give the Department of Education more time to adopt measures for the “new normal” of the education system due to COVID-19.
The Senate has three sessions days left —June 1, 2, and 3 – as its sessions are held only Mondays to Wednesdays
