Sign up | Log in



Home  >>   Daily News  >>   Philippines  News  >>   Economy  >>   Academics tell Aquino to abandon “no new-taxes”
NEWS UPDATES Asean Affairs        18  April 2011

Academics tell Aquino to abandon “no new-taxes”

Related Stories

April 14, 2011
Philippine firms feel fuel inflation

March 9, 2011
Philippines redeems more debt than it issues

April 7, 2011
Philippine manufacturers to pay less tax

April 2, 2011
Philippines central bank BSP mulls rate hike

April 1 , 2011
Philippines consumer sentiment fades

March 24, 2011
Philippine growth rate revised

March  22, 2011
Philippines kicks off bond sale

Two former economic managers on Friday urged the present administration to ditch its “no new tax policy” if it wants a sustainable and inclusive growth. In a presentation, Benjamin Diokno, professor of economics at the University of the Philippines, said President Benigno Aquino 3rd shouldn’t have cut the budget for economic services if he wanted a 7 to 8 percent growth.

“The Aquino administration’s desire to move to a higher growth path will be constrained by a weak fiscal house. Mr. Aquino has to abandon his no-new-tax policy if he wants to fulfill his promise of a robust, sustained and inclusive growth,” Diokno, a budget secretary during the Estrada administration, said at a forum hosted by Security Bank Corp.

He said the national government is not collecting enough taxes, while the debt burden is projected to rise amid normalizing interest rates.

“Fiscal deficit, which is expected to represent about 3 percent of the gross domestic product (GDP) this year, was translating into a higher debt burden for the government,” Diokno said. In a separate presentation, Felipe Medalla, also a UP economics professor, said the Philippines still has not remedied the weak tax collections. poor infrastructure, poor educational outcomes and a bad investment climate, among others.

“An improvement in tax administration would not be enough to increase revenues,” he said, adding that new tax reforms such as the excise tax on alcohol and cigarette products as well as the rationalization of fiscal incentives should be passed.

The socioeconomic planning secretary during the Estrada administration, Medalla expects 5 percent GDP growth, low interest rates and price and exchange rate stability.

“Given the BSP’s good record of maintaining price stability, this gives a reformist government a large room to maneuver,” he said, referring to the Bangko Sentral ng Pilipians.

He also noted the resilience of the domestic economy on the back of current account surpluses every year since 2003.

“This has never happened before since the balance of payments statistics became available. The current account surpluses mean that the economy has more than enough savings to finance both new public and private investments, without exerting undue pressure on interest, exchange and inflation rates,” Medalla said.

He said interest rates, which are too low, are expected to pick up in the coming months amid rising inflation.

Although the March inflation reading of 4.3 percent was lower than expected, it remained firmly in the upper half of the central bank’s target band of 3 to 5 percent for the year.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    18  April 2011 Subsribe Now !
• Emerging economies reject IMF plan Subcribe: Asean Affairs Global Magazine
• New Indo land may end land disputes Asean Affairs Premium
• Land rush in Indonesia
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• River commission to meet on proposed dam
• New city near Singapore moves forward

• Academics tell Aquino to abandon “no new-taxes”

• Fate of Thai real estate tax unknown

• Thai firm ready to start 3G p

Asean Analysis    18  April 2011

Advertise Your Brand
• Odds are Xayaburi dam to proceed Sponsor Our Events

Asean Stock Watch    18  April 2011

• Asean markets anticipate a challenging week p

Global News Impacting Asia    17 November 2010


• Bank of America sees Asian inflation


• Lloyd’s increases insurance push in Malaysia


• Wells Fargo analyst on euro


• Obama’s visit to Asia


ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More


Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2017 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand