Pro-GMA lawmakers ask public to help sustain peso’s momentum

Administration lawmakers yesterday called on the public to help President Arroyo sustain the gathering momentum of the peso by supporting the fiscal and governance reforms that have been set in place by her government.

Representatives Jesli Lapus (NPC, Tarlac), chairman of the House committee on ways and means, and Joel Mayo Almario (Lakas, Davao Oriental), chairman of the committee on games and amusements, issued the call as Bangko Sentral ng Pilipinas (BSP) officials foresaw the peso regaining strength to as high as 53 to $1 next year if government reforms are sustained.

Lapus said it is not only the President who should be pushing for a stronger peso but the entire nation as he rejected the grim holiday scenarios painted by some politicians.

"Contrary to some politicians grim scenarios, we are in for a pleasant surprise this Christmas and even greater surprise for the New Year. We are slowly but surely feeling the easing of economic burden," said Lapus, whose committee was instrumental in drawing up key tax reforms of the administration.

Lapus said while seasonal but yearly inflow of remittances for the holiday season contributed to the peso’s strengthening, the BSP also attributed this to the international market’s renewed confidence in the Philippines as a result of the expanded value-added tax (EVAT).

"More dollars than expected came in or returned because of positive market reaction to our decisive reform implementation. We are now seeing and feeling the burden ease as the oil prices roll back and debt-service savings (come in) which means additional funds for services," said Lapus.

He said the government’s focus for 2006 should be on the implementation of existing reforms and on improving tax collection and administration. "Despite the political upheaval, the country is finally on its way to progress. "If we stay the course with the President, we don’t need new taxes like the text tax."

Almario said while they acknowledge that the peso improvement is largely due to heavy worker remittances during the holiday season, the administration’s economic reforms were also a big factor in the local currency’s surge, as was a reduction in world oil prices, thus freeing a substantial amount for social services.

He said they will make a more specific calculation on the savings in the first quarter of 2006.

He has proposed that all text messages not sent to a phone subscriber be taxed. "These are texts to join promotions, contests, and the like and those sent to a four-digit telecom number. These are not forms of ordinary communications but luxury text messaging. They must be taxed," Almario said.