Salceda sees P432B loss if reclamation remains stalled for 5 years

MANILA, Philippines — The Philippines will lose P432 billion if the reclamation projects at the Manila Bay, which were ordered suspended by President Ferdinand Marcos Jr., would be stalled for up to five years, Albay 2nd District Rep. Joey Salceda said on Monday. According to Salceda, the House Committee on Ways and Means, which he chairs, was able to get that figure after its hearing on reclamation projects based on a computation of possible earnings from the documentary stamp tax (DST), capital gains tax (CGT), and the value-added tax (VAT). “The government is losing a lot due to the suspension, our estimates [if suspension goes on] within the five years — because most of them are one-time transactions, right […] — with DST, CGT, and even VAT, that reaches up to P432 billion,” Salceda said in Filipino. Salceda, who is an economist by profession, also noted that even companies behind the reclamation projects were losing profits. “And the losses pile up — especially those that have started their projects, the three companies: Waterfront [Manila Premier Development Inc.], the one with Charlie Gonzales [Ulticon] and SM [Prime Holdings Inc.] — which have good plans and the capability to increase jobs and add to the value,” Salceda said. Raising revenues without raising taxes He added that if reclamation work could be done right the revenues from the projects alone could be “enough to retire the country’s debt.” “It’s a great way to raise revenues without raising taxes. We already considered funding the military pension system out of reclamation rights during the time of PNoy [the popular monicker of then-President Benigno Aquino III]. But the idea was ultimately shelved because most reclamation projects are local government projects,” Salceda said. “But there are still national government tax implications. Reclaimed land is basically new land. So the land taxes that result out of it are really a way to conjure up new tax sources.” Suspended due to several concerns Last August, Marcos ordered the suspension of reclamation projects due to several concerns, including ecological ones, as many pro-environment groups claimed that the projects would cause the sea level to rise and eventually cause flooding in coastal communities. READ: ‘Resounding victory’ for people: Manila Bay reclamation halt hailed The United States Embassy in Manila also raised security concerns as some of the companies involved in the reclamation projects were said to have been involved in China’s Read more at: inquirer

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