Recto to prioritize pending tax reforms

Louise Maureen Simeon - The Philippine Star

January 14, 2024 | 12:00am

As new finance chief

MANILA, Philippines — Newly appointed Finance Secretary Ralph Recto

has committed to focusing on tax measures deemed a priority by President
Marcos.
After taking his oath, Recto outlined his strategies for achieving inclusive
economic growth that will benefit every Filipino.
Recognizing the country’s limited fiscal space due to the pandemic, Recto
said he would advocate for the immediate passage of key tax reforms endorsed
by the President as priority measures to Congress.
I agree that we need funds to finance growth and our people’s growing
needs, and install a system that promotes fair and fast tax administration,”
Recto said.
“These measures will not only finance development but will reduce the
deficit and our dependence on debt,” he said.
For Albay Rep. Joey Salceda, the new finance chief should give utmost
priority to three of the “most urgent” tax policy objectives to reform the
country’s tax system.
He said the country is in an “awkward position of being among the first
to propose a digital services value-added tax (VAT).
But despite this, he underscored the Philippines is the last in ASEAN-6
to actually pass such a tax and this must be addressed soon.
Salceda also noted the second priority should be electronic commerce
which is now the “driving force of consumer demand.”
The lawmaker also said tobacco excise tax collections could collapse
anew by as much as P45 billion this year due to substitution effects toward
vaping. He said the government has to figure out how to address this declining
revenue stream
Recto has yet to provide his specific plans but for now, he committed to
boosting the country’s economic resiliency by practicing fiscal discipline and
prudent debt management.
The new finance chief emphasized the development of a Philippine
medium-term debt management strategy for transparent public borrowings.
.
Ralph Recto, itinalaga ni Pres. Marcos bilang
bagong Finance chief
Pinanumpa na ni Pangulong Ferdinand "Bongbong" Marcos Jr. nitong Biyernes si House Deputy
Speaker Ralph Recto bilang bagong kalihim ng Department of Finance, kapalit ni Benjamin Diokno.

Ginanap sa Malacañang ang panunumpa ni Recto na sinaksihan ng kaniyang asawa na si Vilma Santos-
Recto.

Bukod kay Recto, nanumpa rin kay Marcos si Frederick Go, bilang kalihim ng bagong tanggapan na
Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA).

Binati naman ni dating Senate President Manny Villar si Recto sa bago nitong posisyon na nakasabay
niya sa Kongreso mula noong 1992, at naging kagrupo sa tinatawag na "Wednesday Group."

"I have had a front row view of his financial acumen, his steadiness in the face of challenges, and his
desire to bring about prosperity to Filipinos. Definitely the best man for the job," ani Villar sa pahayag.

Suportado rin ni Basilan Rep. Mujiv Hataman ang pagkakahirang kay Recto bilang bagong Finance
chief na tinawag niyang magaling na ekonomista at mahusay magtrabaho.

"Sen. Recto's track record as a legislator is remarkable, having chaired several key committees in the
Senate, including on Government Corporations and Public Enterprises and on Science and Technology,
among others. His comprehensive understanding of the intricate details of economic and financial
matters is undoubtedly an asset as we navigate the complex challenges facing our nation," sabi ni
Hataman sa pahayag.

Nauna nang nagbigay ng suporta kay Recto si Senate President Miguel Zubiri na inilarawan niyang
"resident numbers genius" ng Senado.

"This was not just for his mathematical ability, but more importantly for his ability to immediately see
the big picture implications of these numbers,” ani Zubiri.

“More than most, he understands how to bridge the gap between the abstractions of mathematics and
the very concrete realities that we face as a nation. So I have no doubt that he will be a good Finance
Secretary, who will continue to push the country along on the road to greater economic prosperity,”
dagdag niya.

Suportado rin nina Sens. Francis Escudero, Sherwin Gatchalian, at Sonny Angara, ang pagkakapili ni
Marcos kay Recto.

“His knowledge of the political and fiscal structures of the country will serve us well in the future,”
sabi ni Angara, chairman ngayon ng Senate Finance committee.

Nagpahayag din ng suporta ang mga lider ng business at banking community kay Recto, kabilang si
Philippine Chamber of Commerce and Industry (PCCI) president Enunina Mangio.