Lakas solons propose national tax amnesty

Three administration congressmen proposed yesterday the declaration of a nationwide tax amnesty to avoid job losses and give "all businessmen a fresh start."

In seeking a tax amnesty, Representatives Willie Buyson Villarama of Bulacan, Prospero Nograles of Davao City and Aurelio Umali of Nueva Ecija said if the government closes down 300 business establishments for evading taxes, that would drive thousands of workers out of their jobs.

The ranks of the unemployed will swell and the Bureau of Internal Revenue (BIR) will still not be certain if it can collect from the suspected tax cheats, they said.

They stressed that an amnesty will surely be able to raise billions in revenues for the cash-strapped government that is facing a huge budget deficit.

Last week, President Arroyo ordered the BIR to give the erring business entities more time to comply with their tax obligations and to padlock them if they fail to do so.

Umali said the President’s order is equivalent to a reprieve or leniency that these establishments should take advantage of by paying their taxes.

He said during the time of the late BIR Commissioner Beethoven Rualo, a similar program was offered and it yielded about P20 billion in additional revenues.

Beside ordering the BIR to go after tax cheats, Mrs. Arroyo also defended BIR Commissioner Rene Bañez from attacks from several congressmen, including Villarama, Nograles and Rep. Aniceto Saludo of Southern Leyte.

However, Villarama and Nograles appeared to have softened up yesterday in their criticism of BIR officials.

They said while they realize that Bañez and his tax collectors are at fault, businessmen, particularly Makati’s billionaires and multi-millionaires, are partly to blame for the huge budget deficit.

"It is true that there are corrupt tax collectors, but it is equally true that there are many corrupt businessmen who cheat the government of taxes," said Villarama. – Jess Diaz