THE HOUSE Committee on Ways and Means said its priorities on resuming session Monday include grappling with out-of-control pension liabilities for military and uniformed personnel (MUP).
In a statement Saturday, Committee Chairman Jose Ma. Clemente S. Salceda said: “MUP pension reform will be painful but crucial. It’s some pain now or very big pain in the future. The unfunded pension liabilities, according to the GSIS, amount to some P9.6 trillion based on 2019 data. It’s a serious threat to our economic prospects in the long term.”
Pension reform proposals are contained in House Bill No. 9271, or the Fiscal Framework for Military and Uniformed Personnel (MUP) Pensions.
Four tax other measures processed by the committee are up for plenary debate: House Bill 6135 or the proposed law Establishing The Fiscal Regime For The Mining Industry; House Bill 7881, or the proposed Ease of Paying Taxes Act; House Bill 6765, or the proposed Digital Economy Taxation Act of 2020; and a “general tax amnesty (measure) with automatic exchange of information.”
Mr. Salceda said priority legislation in the area of tax enforcements are measures addressing the illicit tobacco trade; sugar tax violations; agricultural trade anomalies; and the use of economic zones for smuggling.
Improving the tax payment process is expected to involve more Bureau of Internal Revenue use of Public Private Partnerships and overseas development assistance.
Mr. Salceda said the committee is also looking to work with the Department of Finance (DoF) on the implementing rules and regulations (IRR) of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law.
“The DoF committed to an IRR date of May 17. I hope we get it by then, because CREATE is only really as good as implementation,” he said.
The House of Representatives overall is also pushing for the immediate passage of the proposed P405.6-billion economic stimulus package, known as the Bayanihan to Arise as One Bill or Bayanihan III. The bill has been approved by the House Committees on Social Services; Economic Affairs; and Ways and Means. It is up for referral to the Committee on Appropriations.
In a statement Sunday, Majority Leader Martin G. Romualdez said: “We only have three weeks to pass this vital measure that will help our fellow Filipinos who are all affected by the pandemic, and we are confident that before we adjourn, we will be able to pass the measure.”
Bayan Muna Representative Carlos Isagani T. Zarate said in a radio interview Sunday that with the passage of the bill, talks on how to fund it need to move forward. “We are looking at the NTF-ELCAC budget (National Task Force to End Local Communist Armed Conflict (NTF-ELCAC) which could be discontinued by the executive to (generate) savings… there are also other large funds in infrastructure, in the Build, Build, Build. Those are not needed by our countrymen but food is.”
Legislators are also looking into increasing the dividend remittances of government-owned and -controlled corporations (GOCCs) as another funding source. A bill proposed by Mr. Salceda would revise the current law to temporarily increase GOCC dividends to 75% from 50%.
Mr. Romualdez said: “the House of Representatives will continue deliberating Resolution of Both Houses (RBH) Number 2 to amend the restrictive economic provisions of the Constitution.”
House Committee on Constitutional Amendments Chairman Alfredo A. Garbin, Jr. said it will push for this measure’s passage in plenary. The proposed changes are meant to revitalize the economy after the pandemic by inserting the phrase “unless otherwise provided by law” to economic provisions of the Constitution. This will give lawmakers authority to legislate the relaxation of economic restrictions.
“We still have seven interpellators. Hopefully before sine die adjournment, we will be able to vote on the measure on third reading,” Mr. Garbin said. — Gillian M. Cortez