‘The next administration will have no choice but to consider the option of upward adjustments in taxes, but they should also look into increasing the tax base by efficient collection and strong-arm methods against big tax evaders…’
IT IS good to know that the Duterte administration’s economic team headed by Finance Secretary Carlos Dominguez III has started transition talks with the camp of leading presidential candidate Ferdinand Marcos Jr. who is most likely to become the 17th president of the country.
While the official canvassing of votes by Congress is yet to start on May 23, there is enough reason to believe that Marcos Jr., 64 years old, has won the presidential race. With 31 million votes to his name as reported by the Commission on Elections (Comelec) straight from more than 95 percent of the precincts nationwide, it is not surprising that other candidates like Manny Pacquiao, Isko Moreno, Panfilo Lacson, Leody de Guzman, etc. have conceded defeat.
Malacañang’s committee to supervise the transition of power to the next administration is chaired by Executive Secretary Salvador Medialdea, but the most important job is on the shoulders of Secretary Dominguez because this is about the national economy: how to navigate the ship of state towards calm waters in the face of turbulent international economic waves caused by both the COVID-19 pandemic and the Russia-Ukraine war, among others.
Preparations for the transition started weeks before when Dominguez’ team briefed the camps of other candidates for president on the nation’s economic situation, an effort that will redound to good whoever will win in this election.
It is a hard fact to admit but should be recognized just the same that the next President will inherit the consolidated debt of the outgoing administration to the tune of P12.98 trillion, incurred by the national government mainly to fight the onslaught of COVID-19 during the past two-and-a-half years and to finance initial efforts at economic recovery.
To address this, the Department of Finance has prepared fiscal consolidation proposals which will likely include tax hikes to repay the country’s increasing debt.
The next administration will have no choice but to consider the option of upward adjustments in taxes, but they should also look into increasing the tax base by efficient collection and strong-arm methods against big tax evaders like what Duterte did. Needless to say, a no-nonsense campaign against corruption that cuts a hole in the nation’s coffers should be pursued.
A tall order indeed for the next administration, but a challenge worth taking on.
