MANILA - New taxes or increased tax rates are not likely to be imposed if Sen. Francis "Chiz" Escudero is elected as president of the country next year.

At a forum for presidential aspirants hosted by the Economic Journalists Association of the Philippines, Escudero said raising taxes is "trabaho ng tamad" and should just be the last option when the economy improves.

"I don't agree in raising taxes in any shape, size or form," Escudero said during the Tuesday forum held at the New World Renaissance Hotel.

He stressed that about P300 billion worth of taxes and duties are lost to corruption and inefficiency in collection. If this is addressed, he noted that the amount would be more than enough to plug the country's ballooning budget gap.

"On the average, around P300 billion is lost through the BIR (Bureau of Internal Revenue) and the BOC (Bureau of Customs). Why? Officials or employees of these agencies exercise discretion. In my book, discretion in government offices is equal to corruption," he noted.

He cited the inability of the Arroyo administration to reform the revenue collecting agencies. "Minimize discretion and you minimize corruption. Eliminate discretion and you eliminate corruption," he said, adding that the government loses about P480 billion annually due to smuggling and corruption.

The effect of corruption spills over to the country's low competitiveness, he said, citing the Global Competitiveness report. He said corruption has handicapped the government from focusing on improvements in vital areas like education, social services and achieving food self-sufficiency.

This year, the government has set a budget deficit target of P250 billion or 3.2% of the country's gross domestic product as the impact of the global economic continue to batter the local economy.

The government has been pushing for the passage of several tax measures, which include the restructuring of excise tax on sin products, rationalization of fiscal incentives, and the simplified net income taxation, among many others.

Food security

Escudero also said the National Food Authority (NFA) should be strengthened rather than be abolished. He said one day NFA's role should become irrelevant.

"In times of market failure, government should step in, that's the role of NFA," he noted.

Rather than lose money to foreigners, he said government should just lose out to fellow Filipinos. Escudero was referring to the cost of sourcing imported rice at P40 to P43 per kilo from Thailand and Vietnam and sell the same at P18 to P20, NFA is buying at P17 to P18 from local farmers.

"We could spend the same amount we spend for importation to irrigation, there is no need to import rice for one year," he said.

No to BPO's

In the same forum, Sen. Jamby Madrigal also shared her plans for the Philippine economy.

She caught the attention of many when she all but slammed globalization and related industries, including the much-touted business process outsourcing.
Madrigal says these have not generated wealth for the country, but brought wealth to other nations.

"BPOs have made us a cheap country," says the senator.

Madrigal also criticized the current administration's thrust to raise sin taxes, citing a study commissioned by her office that reveals only the poor are affected by such a measure.

"I am all for taxing the rich, but right now it is only the poor feeling the brunt of the increases," she points out.

Global vs national

Philippine Chamber of Commerce and Industry President Edgardo Lacson says both aspirants presented very different ideas.

"Escudero was more global, Madrigal was more national," he notes.

But he stresses, "Globalization is a reality now, and the next president has to be prepared to be competitive globally."

Makati Business Club Exec. Dir. Alberto Lim adds that with several fora already held with presidentiables, aspirants have yet to detail how to reform the budget.

"I have not heard any statement saying 'I will reform the budget.' The power of the president is massive. Compared to pork barrel, this is a beef barrel. It has to be allocated responsibly," he said.

First Grade Holdings Managing Director Astro Del Castillo warns that the track record of individuals vying for the presidency should be studied, as a measure of whether they have the capability to deliver their promises.

"They have to walk the talk," he said.

Del Castillo adds that 2010 will be a critical year for the economy, as it recovers from effects of the global financial crisis.

Del Castillo says the business community will likely come up with a list of viable presidentiables come November this year, and will be planning a similar forum by January next year. - with reports from Michelle Orosa, ABS-CBN News