President Ferdinand Marcos Jr. has vetoed two enrolled bills seeking tax exemption for the election honoraria of poll workers and the creation of a Philippine Transportation Safety Board (PTSB).
In his veto message, Marcos said the bill exempting from income taxation the honoraria, allowances, and other financial benefits of poll workers contradicts the objective of the government’s Comprehensive Tax Reform Program.
“The measure runs counter to the objective of the government’s Comprehensive Tax Reform Program to correct the inequity in the country’s tax system and negate the progressivity of the reforms
introduced under Republic Act 10963 or the TRAIN (Tax Reform for Acceleration and Inclusion) law. Moreover, the studies of pertinent government agencies on the revenue loss is too substantial an impact to be foregone,” the President said.
The bill aimed to make the honoraria, travel allowance, and other benefits granted to poll workers exempt from tax as well as to exclude poll workers’ tax-exempt… honoraria and allowances from their gross income.
Marcos said the measure would be “inequitable to other persons performing similar activities and/or services.”
“Moreover, providing additional support to any sector is best addressed through targeted budgetary spending rather than through the tax system,” the President said.
He urged Congress to enact measures that are “consistent with the thrust and commitment” of the administration toward national economic recovery.
On the measure proposing the creation of the PTSB, Marcos said the proposed functions are already being undertaken by different agencies under the Department of Transportation, which include the Land Transportation Franchising and Regulatory Board, Land Transportation Office, Philippine Coast Guard, Aircraft Accident Investigation Inquiry Board, and Maritime Industry Authority.
The Philippine National Police and the National Bureau of Investigation also perform the same functions, Marcos said.
Under the bill, the proposed PTSB shall be an independent and a non-regulatory agency under the Office of the President.
The PTSB shall ensure the maintenance of a safe, viable, efficient, and dependable transportation system; improve transportation safety measures to prevent accidents; and ensure the implementation of transportation safety standards.
“Considering that one of the primary policies and declared priorities of the administration is to enhance the government’s institutional capacity through optimal and efficient use of resources and strategic rationalization of the functions of government agencies, I am constrained to veto the bill,” he said.
Senator Grace Poe, however, said the veto of the measure was “unfortunate.”
“The need for an independent agency to investigate transport accidents is a global standard which should have been in place. A close review into the provisions of the proposed Philippine Transportation Safety Board would reveal that all functions and mandates are not at all duplicated,” Poe said.
“The veto is unfortunate given that from 2016 to 2020 alone, a total of 483 accidents have been recorded in the maritime sector, while the road sector reported a 12,487 yearly average deaths due to road crashes,” she added.