Habito backs reform of MUP pension

By Cai U. Ordinario @caiordinario

According

However, in the case of MUP pensions, it appears taxpayers coughed up the funds.

“Parang sinagot na ng taxpayers ,” Habito said during a forum at the University of the Philippines School of Economics last Monday.

“Maybe at that time when they put it in place, they said Sige [okay], we owe it to our military because we owe our (utang natin ang ating ) security as a nation to them;’ so, hindi na bale, wag na silang mag -contribute: taxpayers na lang.’” [It doesn’t matter if they don’t contribute: let’s make the taxpayers do.]

However, Habito, currently a Professor of Economics at the Ateneo de Manila University, said that move, “intrinsically, to me is wrong because everybody else contributes to their own pension by counterparting between employee and employer.”

“So why should they [military and uniformed personnel] be an exception?” Habito said during a conversation with reporters on the sidelines of the event.

Pampered

HABITO added that while he was unsure when the current structure of MUP was crafted, it may have been done during the term of the President’s father, Ferdinand E. Marcos Sr. He added this was a time when

Food-makers urge sugar tax hike review

By Raadee S. Sausa

AN organization of food manufacturers urges government to find alternatives to finance officials’ proposal to increase taxes on sweetened beverages.

In a statement issued last Tuesday, the Philippine Chamber of Food Manufacturers Inc. (PCFMI) highlighted the potential negative repercussions of the proposed tax hike and emphasized the importance of exploring alternative interventions to promote positive health outcomes and revenue generation. While expressing support to the Marcos government’s efforts to secure sustainable revenue streams, the organization of more than a hundred food product manufacturers and distributors expressed concerns regarding the “discriminatory and regressive nature” of the proposed tax increase. The group added they believe the new taxes “may hinder sector competitiveness, reduce incomes and negatively impact the national treasury.”

“We draw attention to the potential inflationary impact of such a tax measure. The proposed increase in excise tax could lead to further increased prices of sweetened beverages and disproportionately target the most vulnerable segments of society, exacerbating existing economic challenges,” the chamber said.

“There is also a risk that consumers may turn to cheaper, untaxed alternatives, potentially fostering illicit trade and compromising public safety,” it added.

The organization noted that the proposed new taxes on sweetened beverages were initially presented as a preventive health measure to address products allegedly linked to increased rates of obesity and diabetes. However, the organization said no studies have yet demonstrated their impact five years since Republic Act 10963 (Tax Reform for Acceleration and Inclusion) was enacted into law.

The PCFMI has proposed that a comprehensive and scientificallybased study be conducted to determine the root cause of obesity and other non-communicable diseases.

Furthermore, the chamber said that the findings from this study should then inform appropriate actions, rather than relying on unproven claims to increase the rate of SB taxation or expand its coverage.

The PCFMI recommends exploring alternative interventions, like product reformulation, reduced package sizes, data-based labeling, and expansive media and onground campaigns advocating balanced diets.

The group stresses the need for effective, revenue-generating strategies that do not obstruct economic expansion or job creation.

“We align ourselves with the current administration’s vision of positioning the Philippines as an attractive investment destination and generating employment opportunities for Filipinos,” the PCFMI said.

“We firmly believe that there are more effective and less disruptive ways to raise government revenue without resorting to discriminatory tax schemes,” the PCFMI added.