Purisima named GMA’s economic spokesman

President Arroyo named yesterday Trade and Industry Secretary Cesar Purisima as her "economic spokesman" on taxes, prices, and other matters related to the economy.

Presidential Spokesman Ignacio Bunye said Purisima will soon comment on the new tax measures, rising oil prices, and other questions relating to the economy.

"The whole issue will be responded (to) by our economic spokesperson, and that’s the DTI (secretary)," he said.

"Let me just emphasize at this point, we really have to balance, we have to put in the context of cost-and-benefit to the consumers as well as to the nation as a whole."

Meanwhile, Bunye said despite the series of oil price hikes, Mrs. Arroyo has a positive view of the country’s economy.

"Rising oil prices will have a dampening effect on the economy, but we must seek all opportunities to gain ground by being more productive and cost-effective in our development programs," he said.

"We have made a long start over the recent years and we must keep to our targets despite deepening constraints."

Bunye said Mrs. Arroyo and her economic team are expected to discuss her tax proposals in today’s third round of the Legislative-Executive Development Advisory Council (Ledac) meeting at Malacañang.

"The agenda would be the President’s economic reform program and other priorities," he said.

Finance Secretary Juanita Amatong will present the administration’s economic reform program before the Ledac meeting, he added.

Among Mrs. Arroyo’s eight tax proposals is the repeal of the value added tax law, which she authored when she was a senator.

The others are the shift to gross income taxation, the tax on windfall telecom income, indexation of "sin" taxes on liquor and cigarettes as well as petroleum products, rationalization of fiscal incentives, tax amnesty and the creation of a performance-driven system for revenue agencies.

Mrs. Arroyo’s tax bills seek to generate an estimated P80 billion in revenues a year for the cash-strapped government. — Marichu Villanueva