MANILA, Philippines - House Speaker Prospero Nograles shot down calls for the passage of new taxes as a response to the country's swelling budget deficit.

“Any tax measure today is so ill-timed and so ill-advised. The House of Representatives will be again criticized as insensitive in the light of the prevailing economic crisis, unemployment and low consumer consumption,” Nograles said on Wednesday.

“Additional taxation upon our people is the last thing in our mind today. The House leadership won't even try it," he added.

The Department of Finance projected a budget deficit of P293 billion in 2010, higher than the government's initial estimate of P233.4 billion.

Quezon 3rd district Rep. Danilo Suarez, a proponent of new tax measures in the lower House, had earlier criticized Congress for sitting on his bills.

Suarez had been pushing for bigger taxes on sin products and telecommunication companies. Both measures are pending in the House committee on ways and means.

Instead of new tax measures, Nograles argued that it is the finance department's responsibility to improve tax collection and administration.

"The House of Representatives should not be blamed for this increase in budget deficit because we have already too much tax measures. What should be done is to improve our tax collection system instead of imposing too many taxes to the public,” Nograles said.

Sitting on tax measures

The Department of Finance had pushed for at least 7 “positive” tax measures calculated to generate additional P50.9-billion revenue every year.

These pending tax measures are expected to contribute the following:

P20 billion - sin tax reforms
P10 billion - rationalization of fiscal tax incentives
P10 billion - anti-smuggling law
P5.7 billion - metering device on telcos
P5.2 billion - Simplified Net Income Taxation Scheme or SNITS

But Nograles said congressmen are deliberately sitting on the tax bills because their constituents don't want them passed.

“While additional tax measure may be justified, its timing is very very bad. And to disregard this national feeling is callousness of the highest order. Improving tax administration collection is more appropriate,” he said.

Nograles said the budget deficit is still manageable.

“Note also that what is important is that the level of deficit is still manageable and we have not experienced any spiraling of interests . Foreign exchange rate is stable and inflation is still low. Our macro-economic fundamentals are still okay and so with our credit rating. The government has still maintained critical basic services and infrastructure expenditures,” he said.