Former president Benigno Simeon 'Noynoy' Aquino III (Screengrab from RTVM)
MANILA – Finance Secretary Carlos Dominguez III and business groups have recalled the economic reforms done during the administration of former president Benigno Aquino III, who passed away Thursday morning.
In a text message to reporters, Dominguez cited that the Tax Incentives Management and Transparency Act (TIMTA) and the sin tax law have helped in shaping a strong economy prior to the coronavirus disease 2019 (Covid-19) pandemic.
TIMTA has enabled the government to review and analyze the economic impact of tax incentives given to qualified companies.
Dominguez said this law passed under the former Chief Executive has “resulted in the formulation and enactment of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, which was recently signed by President Rodrigo Duterte in March.”
“Sin tax law, which increased the excise tax (of) sin products and reduced to one rate the number of categories of taxes on cigarettes, (has) also laid the groundwork for increasing excise taxes on cigarettes as well as the enactment of legislation on excise tax on sugary drinks,” he added.
Aquino signed in 2012 the legislation, in which the government earmarked 85 percent of the higher tobacco revenues to health expenditure and 15 percent to tobacco-producing regions.
According to The Asia Foundation, the road to Universal Health Care, which was enacted into law in 2019, began during the passage of sin tax law as revenues from higher taxes on cigarettes go to healthcare.
In a May 2016 statement, Dominguez said the Duterte administration “will continue and maintain the current macroeconomic policies” of then President Aquino.
In separate statements, the Philippine Chamber of Commerce and Industry (PCCI) and the Makati Business Club (MBC) said they are mourning the passing of Aquino.
“It is with great sadness that we learn of the passing of former President Noynoy Aquino,” PCCI president Benedicto Yujuico said.
He added that Aquino continued to boost the country’s fiscal stability and macroeconomic fundamentals that he inherited from the previous administration.
“(I)t was during his term that the Philippines won its first investment-grade credit rating. In 2013, three years into his Presidency, Fitch Ratings raised the country's credit rating to investment grade citing the political and economic reforms implemented under Aquino. Other credit rating agencies followed suit,” Yuijico said.
He said economic growth was also remarkable during the Aquino administration, which peaked at 7.2 percent in 2013, the second fastest economy in Asia, only behind China.
He added foreign direct investment inflows rose by 60 percent when Aquino finished his term.
“(T)he legacy of President Aquino should live on,” the PCCI chief said.
Meanwhile, MBC also recalled how the Aquino administration helped in improving the lives of Filipinos, with its “pro-people social policies” such as modernizing education, expanding cash transfers, and “relatively clean government”.
“We pray for President Aquino, send our condolences to the family, and thank them for his service to the people and democracy. We join the nation —including many in the business community, who knew him, served with him, or called him friend— in their sorrow, prayers, and rededicating ourselves to lifting up more Filipinos,” MBC said. (PNA)
