Contribute to growth, pay taxes, Pinoys urged

MANILA, Philippines - Ordinary citizens should do their part in helping the country sustain its record economic gains by simply paying their taxes, according to Finance Secretary Cesar Purisima.

“April 15 is the deadline for income tax filing. I urge everyone to contribute to the work of building our country by paying the right taxes,” Purisima said in a statement in reaction to the country’s getting an investment grade rating Wednesday from the New York-based Fitch Ratings.

“Higher revenues will allow us to invest in more education programs, more health services, and more infrastructure, creating more jobs and more wealth for everyone,” he said.

“Everybody wins when everybody pays the right taxes,” he said. “We have already done so much in the past three years, with greater cooperation from our people, we can do so much more.”

Presidential spokesman Edwin Lacierda said that while an investment grade rating would open new opportunities for the Philippines, “it also poses a challenge to all of us to maintain it.”

“Hence, the Philippine government will continue to focus on sustaining the progress that we have achieved both in terms of economic growth and institutionalizing good governance reforms,” Lacierda said.

Lacierda said the administration is determined to preserve the factors that had enabled the country to achieve investment grade rating, including stable inflation, favorable interest rates, sound banking system, and strong fiscal position.

“Most of all, the platform of good governance, which has made such progress possible, will continue and is irreversible. Foreign and local businesses can rely on a government that will continue to be transparent, effective and responsive,” he said.

An investment grade rating means the Philippines is capable of meeting its financial commitments on time.

Credit risk is one of the factors taken into consideration by potential investors.

Budget Secretary Florencio Abad, for his part, said investment grade rating is a big boost to the country’s manufacturing sector.

“We are now affirming our growing reputation as a key investment hub in Asia – at par with our high-performing neighbors in the region – as we continue to enhance the country’s fast-moving industries, such as tourism and business process outsourcing,” Abad said.

For Sen. Franklin Drilon, the Fitch upgrade would help the government spend more for infrastructure development and social services.

He said an investment rating from Fitch was proof of the resilience of the economy and of the improved fiscal management under the Aquino administration.

But he said a ratings upgrade would not have any relevance to the poor unless they see and feel concrete benefits such as employment and additional health and education services.

“While we welcome this unprecedented investment status upgrade that basically acknowledges the positive reforms under the Aquino administration, we must see to it that these fiscal advantages and benefits should lead to more jobs and better incomes for poor Filipinos,” Drilon said.

Former Akbayan party list Rep. Risa Hontiveros, meanwhile, said the Fitch rating is expected to strengthen the foundation of the government’s anti-poverty agenda.

Hontiveros, who is running as a senatorial candidate under Team PNoy, said the government is now in an even better position to eradicate poverty as a result of the Fitch upgrade.

“The historic investment grade bolsters the government’s arsenal in fulfilling its anti-poverty agenda. It shows that we now have the momentum to pursue the second half of the ‘kung walang corrupt, walang mahirap (there are no poor where there are no corrupt)’ promise,” Hontiveros said.

“Now is the time for the nation to roll up its sleeves to eliminate poverty,” Hontiveros said.