(UPDATE) '5% campaign tax gives admin bets edge'
abs-cbnNEWS.com | 11/05/2009 11:38 AM
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MANILA - The 5% tax on campaign contributions is discriminatory as it would give administration candidates an advantage over the opposition, according to former Education Secretary Florencio 'Butch' Abad, who is now the campaign manager of Senator Benigno 'Noynoy' Aquino III.
In an interview over ANC's morning program News@8, Abad said opposition candidates do not have the resources of the government and are more dependent on contributions to run their campaign. Thus, the 5% tax works to the advantage of the administration candidate.
He said withholding 5% from contributions would "adversely affect the ability of those in the opposition to compete in the elections against the administration, which has the government network, the government resources and every source of possible campaign support that can be generated within the government bureaucracy."
Abad believes the new tax discriminates against "struggling candidates and political parties."
The camp of Senator Aquino has claimed it lacks funds. Several groups have started fund raising activities for Aquino's presidential run.
Abad said that aside from being discriminatory, the new tax imposition is impractical and has several gray areas.
"If the BIR (Bureau of Internal Revenue) is not able to implement taxes based on existing laws, I don't see how they can do it in this campaign," he said, referring to the bureau's projected failure to meets its target collection for the year.
He added that candidates or political parties can also easily ask their supporters to contribute in kind, instead of giving cash for propaganda materials.
He added that election campaign contributions would not be as lucrative a source of government revenue since the "contribution base in this country is so narrow."
"If you carefully study the campaign funding of politicians, they are mostly generated by the candidates themselves. The reliance on contributions is very small," Abad said.
The Liberal Party (LP) stalwart said that in other countries, particularly in Europe, political parties or candidates are subsidized by the government. He said this is the government's way of strengthening the democratic process.
In the Philippines, he said the "government wants to impose a burden on the coming political exercise, when, in fact, it should be making it easy for people to participate because contributions to campaign are a form of participation in a democratic process."
Without legal basis
In his more than 20 years in politics, Abad said this would be the first time that the government will impose tax on campaign contributions.
"I'm really surprised. What is the basis for this tax? I've been a politician for a long time, I've never encountered this new imposition," he said.
He added that if the campaign tax is new, it should go through Congress before being imposed by the BIR.
"It cannot be an administrative measure. Even the legal basis for this imposition is questionable," Abad said.
BIR acting chief Joel Tan-Torres said the bureau has been closely coordinating with the Commission on Elections (Comelec) regarding the new imposition.
Torres said the BIR is ready to face any politician who would want to question the legality of the campaign tax.
"We are ready. We are sure about the legality of this," he said in an interview on ABS-CBN's Umagang Kay Ganda.
Anti-democratic
Nacionalista Party (NP) senatorial bet Adel Tamano said the new tax law is anti-democratic and violates the people's right to free expression.
"[Financially] Supporting candidates, this is not just part of the electoral process, it's part of the right of free expression. Increasing the burden on our citizens, which makes it difficult for them to participate in the electoral process, is anti-democratic," Tamano told ANC's Dateline Philippines on Thursday.
He added that it would be unfair and unwise for the present administration to impose another tax just because it will fail to meet its collection target for the year.
Valenzuela Rep. Rex Gatchalian, spokesman of the Nationalist People's Coalition, echoed the two politicians' opinion that imposing a tax on campaign spending disrupts the people's right to participate in the electoral process.
"Elections are a participative exercise. We have to get people to join the system, to participate by voting, supporting, and watching their votes. Supporting comes in different means--giving campaign contributions, lending their time and their effort. Small donors would want their donations to go a long way," Gatchalian said.
Tamano and Gatchalian said their parties are now consulting their members and legal counsels to determine the legality of the new tax measure, and what they would do as a party to oppose or support the measure.
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