Finance Secretary Margarito B. Teves, in the same interview, said the priority bills are changes in the income tax structure for self-employed persons and the fiscal responsibility bill, which seeks to put a cap on borrowings.
“In principle,” the Palace will support a cut in tax incentives “but at the end of the day it will be up to Congress,” Mrs. Arroyo said.
There are a number of fiscal incentives that might not be needed to stay competitive, she said, but exporters will continue to enjoy perks.
“What we want is to be able to streamline the incentives to ensure that theyre efficient but without sacrificing competitiveness,” the President said.
The “bottomline” is that Philippine fiscal incentives should not be less attractive than what neighboring countries are dangling to entice more foreign investors.
Mrs. Arroyo also vowed to improve the countrys infrastructure network as part of a plan to improve non-fiscal incentives.
In line with this, the Palace will push for amendments to the Electricity Power Industry Reform Act to “reduce power costs sooner.” One “uncontroversial provision” is the long process needed to bring down power rates, she said.
“[Right now],you need to have a hearing to lower power rates. You should only have a hearing to determine the ceiling on power rates,” Mrs. Arroyo stressed.
A bill seeking to lower the prices of medicine by allowing more parallel imports of generics and encouraging more generics firms to manufacture locally will likely be sent to Congress again as a priority measure. Expectations the bill would be ratified by the House last week during its remaining session days were dashed as the House failed to muster a quorum.
“It was a disappointment,” Mrs. Arroyo remarked, but said she would rather not put the blame on anyone.
The Philippines first bilateral free-trade deal, the Japan-Philippines Economic Partnership Agreement, will also be sent to the Senate for ratification, and Malacaang is willing to wait for “as long as it takes.”
Mrs. Arroyo appeared unfazed that the incoming Senate would be dominated by the opposition, some of whom are her harsh critics.
“What Ive been telling everybody is the Senate, and Ive been there, as it was in the beginning is now and ever shall be 24 independent republics,” she said. (PIA Dispatch)
