MANILA – The rush to shift to a federal form of government could derail the administration’s comprehensive tax reform program, a tax expert said Monday.
Speaking to ANC’s Market Edge, former Bureau of Internal Revenue examiner and founding president of Asian Consulting Group Mon Abrea said he doubted if it this was the right time to shift to a new form of government.
He called on the government to prioritize tax reforms instead.
“Given that there is an ongoing concern with this [tax] reform and we are coming up with a change in government, I doubt if this is something we can really embark on right now,” Abrea said.
“We have to really weigh the pros and cons or cost benefit of the proposed federalism,” he added.
Abrea said he also doubts whether the proposed 50-50 sharing under the draft federal charter could fund the Build, Build, Build, program.
Seventy percent of the collections from the first tax reform package was supposed to fund the infrastructure project, he said.
“Will the federated regions be responsible in building their bridges and roads?” he asked.
Abrea said red flags raised by analysts, economic managers and businessmen need to be addressed, including the payment of the national debt and efficiency in collecting taxes.
“Let’s take it one step at a time. Do not rush,” he added. (With a report from ABS-CBN News/PN)
