To inform its work on Public Budgeting for Children and to increase awareness among civil society organizations, CRC Asia in partnership with Action for Economic Reforms, World Vision Philippines, and WomanHealth Philippines, hosted a brown bag session on current tax reforms and children’s rights in the Philippines on 4 May 2017 at the World Vision office in Quezon City.
Ms. Nicole Cuunjieng of the Department of Finance discussed House Bill 4744: Tax Reform for Acceleration and Inclusion which aims to create a simpler, fairer, and more efficient tax system. When passed, this law will put more money in people’s pockets by adjusting Personal Income Tax brackets and restructuring taxes for micro businesses, donor’s taxes, and estate taxes. In addition, it will fund investments for a more inclusive growth by broadening the Value Added Tax system (excluding raw food and other necessities), increasing excise tax on all petroleum products and index to inflation, and updating excise tax on automobiles. Lastly, the proposed tax system will uplift the poor and vulnerable through a progressive social protection using targeted cash transfers and public transport subsidies. (Download Tax Policy Revised Package 1 HB4774 Briefing)
“Tax reform, when seen as a package, provides benefits to 99% of Filipinos,” Ms. Cuunjieng said. Tax reform is an investment in the future. It will not be easy, and there will be short term challenges, but gains in personal income tax regime will offset additional expenses from higher oil prices, car loan payments, and inflation. “More important than the tax is how we spend the money to benefit poor Filipinos,” Cuunjieng added.
Mr. Filomeno “Men” Sta. Ana of Action for Economic Reforms (AER) discussed taxation and children and human rights in the Philippines. Ms. Jo-Ann Diosana of AER pointed out that that taxing cigarettes will prevent the pick-up of vice among the youth and the poor. A tax on sugary drinks will also prove beneficial as it will prevent diabetes and obesity, especially among the youth. Taxing these non-essential items will further contribute to the budget that could be used for projects to improve children’s nutrition.
“Tax reform is a reform for everyone which requires multi-partisan effort,” Sta. Ana stressed. “We have to be vigilant and push for this.” (Read: Pass the Tax Reform Package Without Undue Compromise)
CRC Asia’s Regional Executive Director, Ms. Amihan Abueva emphasized the importance of involving children in the budget process. “We must make the circle of accountability bigger. Involving the youth creates a larger pool of people who push government to perform better.”
In the last three years, CRC Asia has been actively working with experts and children in helping draft the UN Convention on the Rights of the Child (UN CRC) General Comment No. 19 on Public Budgeting for the Realization of Children’s Rights. It has also contributed to and reproduced the child-friendly booklet: “Public Budgets: How Governments Should Spend Money for Children’s Rights” which are being distributed worldwide. Ms. Abueva said that CRC Asia is willing to collaborate with groups to draft, test, and publish child-friendly material on tax reform and public budgeting at the national level.
Aside from Tax reform, the brownbag session also featured a discussion on dengue vaccination in the Philippines and the return of investment for Filipino Children. Dr. Leonila “Inday” Dans, clinical epidemiologist, pediatrician, pediatric rheumatologist, author and university professor showed that not all government programs for children are good for children and stressed that the public must be vigilant in ensuring that public investment in children must indeed be for their best interest.
Dr. Dans reported on the controversies surrounding a 3.5 billion government project to provide 1.3 million school children aged 9 years old and above with dengue vaccine even before clinical trials were completed. Dr. Dans discussed how investment on this vaccine at that time was not sound because of the possibility of harm. Because of her and her husband’s due diligence as concerned citizens and medical practitioners, the Philippine Senate and House of Representatives saw it necessary to probe the project. The Department of Health has halted the expansion of the program. The dengue vaccine is available for purchase over the counter, but on January 2017, the Philippine Food and Drug Administration barred multi-national drug company Sanofi Pasteur to promote the dengue vaccine through commercials on TV, radio, and social media. (Watch: The rich can have a blood test before deciding on dengue vaccination; The poor have no choice)
Finally, Ms. Bing Diaz, Development Management Officer, presented the initiatives of the Child Rights Center Commission on Human Rights.
Ms. Mercy Fabros of WomanHealth closed the session by encouraging child rights organizations to advocate for tax reform.
