“Revenue generating measures to focus on rich instead on poor “ – Castelo

“It is not hard to imagine that perhaps, up until today, no one has cut the umbilical cord that binds private sector to the government since the former has always enjoyed various kinds of incentives when they do business”, Rep. Winnie Castelo of the 2nd District, Quezon City had this to say.

The lawmaker is, in effect, opposed to the plan of increases that will take into effect come March 1, 2011 on the use of both the MRT and the LRT were its objective is one of tapping other available options to generate revenues to the national coffers.

“If we look at the proposed hikes from current levels from the point of view of having to generate income for the government, there certainly are other more effective ways. The riding public, majority of whom are poor should be the last to take the burden. We can cut tax incentives now being enjoyed by big businesses and multi-national companies. The campaign on tax cheats and smugglers can easily add to national coffers than passing the burden to the commuters now already experiencing economic woes”, Castelo said.

In a statement, the administration lawmaker also stated that the problem in these impending hikes on MRT and LRT is the apparent failure of the project proponent to factor in ‘willingness to pay’ on the part of the commuters into the whole equation and thus caused this social uproar against increases in user’s fees.

Castelo added, “I can even suspect that the formula used in these adjustments in user’s fees may have to be re-evaluated by taking into account the time period of 25 years within which the MRT or LRT operator recoups on investment”. According to the QC solon, it seems that only in this country is the fundamental issue related to ‘willingness-to-pay’ as a measurement before any final decision is reached since it carries with it notion of the distribution of wealth in society.

Finally, Castelo said, “We should have a smart and official mouthpiece that can inform the affected publics of the true and real nature of rates whenever they have to be adjusted following certain prescribed and legislated periods”. 30