Speaker Feliciano Belmonte Jr. and House Independent Minority Bloc leader Rep. Ferdinand Martin Romualdez on Sunday rejected Malacañang’s proposal to lift the bank secrecy law for tax purposes, fearing this could be used to persecute members of the political opposition and may even scare away local and foreign businessmen.
Belmonte and Romualdez, a lawyer and president of the Philippine Constitution Association, made separate statements after the Speaker disclosed that he rejected the measure during a recent meeting in Malacañang with President Benigno Aquino III and his economic team led by Finance Secretary Cesar Purisima and Internal Revenue Commissioner Kim Henares.
Belmonte and Romualdez, a senatorial bet, stressed that the government should instead run after big-time tax evaders, smugglers and money launderers.
Belmonte said that the Palace-proposed measure will not gain support from Congress and will not be approved before the President ends his term.
Romualdez, also a banker, said lifting the Bank Secrecy Law under a state that abuses its power to demolish its critics was dangerous as the law would be prone to abuse if government would be given easy access to bank accounts.
“The Speaker was right to reject the proposed measure and I am with him that the government should run after bigtime smugglers, money launderers and tax evaders,” Romualdez said.
Henares wanted Congress to ease the restriction on bank accounts for “tax purposes” before President Aquino steps down from power on June 30, 2016.
She noted that the Philippines is one of the three countries in the world that still has restrictive banking laws.
Belmonte said he told the finance officials of his opposition during a meeting last week with President Aquino because the measure will not pass scrutiny in Congress primarily because it would scare away local and foreign investments when the government would be granted access at any time to their bank accounts.
Belmonte challenged Henares to just intensify her agency’s campaign against big-time tax evaders.
“My challenge to BIR is to expand the miniscule tax base of the country, and start with the country’s richest families and those, although ostensibly not rich, but sport themselves with super expensive cars,” Belmonte added.
While Romualdez branded the proposal as “a good and very laudable for transparency and accountability,” he said approving the bill by “amending certain provisions of the Bank Secrecy Law” is not good because of government’s perceived bias against political opposition.
“Passing this right now is ill-timed because we have a color-blind government or selective in granting justice and not sincere in prosecuting violators of the country’s laws,” Romualdez said. “This could be used as a tool for persecution or harassment against
members of the political opposition. This government has a track record of demolishing the image of its enemies,” Romualdez added.
Another member of the Romualdez-led independent bloc Buhay Hayaang Yumabong (Buhay) Rep. Lito Atienza vowed to block the passage of the measure. Atienza believed the proposal will be used against the perceived critics of the government.