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Arroyo calls Congress to special session

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Thursday, December 30, 2004
Arroyo calls Congress to special session

MANILA -- President Arroyo on Wednesday called Congress to a special session on January 5-7 to pass tax bills certified urgent by Malacaņang, in particular the Lateral Attrition Bill.

Arroyo, through Proclamation 752, invoked her powers under Sec. 26 (2) of Article 6 of the Constitution to call Congress to a special session.

The reply from the Senate was prompt and quick: the Upper Chamber would resume session on January 5 or five days earlier than the January 10 schedule.

Senate President Pro Tempore Juan Flavier said senators are in agreement with President Arroyo that there is a need to cut short their Christmas break to discuss important tax measures intended to raise additional revenues for government.

Arroyo said she is calling on Congress "to urgently consider the passage of the bill providing for optimum performance in revenue collection through the grant of special rewards for exemplary service as well as lateral attrition in revenue generating agencies of government and such other revenue mobilization measures prioritized by Ledac (Legislative-Executive Development Advisory Council)."

Flavier said Arroyo had initially discussed with him her plan to convene a "special session" of Congress to tackle the proposed lateral attrition and value-added tax reforms.

"It's okay with me... I am a good soldier," said Flavier, who is acting Senate president in the absence of Senator Franklin Drilon, who is out of the country.

Congress was supposed to resume session on January 10, after taking a break for the Christmas holidays starting December 17.

Senator Flavier said he would call the session to order and proceed with the pending legislative agenda, especially the resumption of the debate on the lateral attrition.

Nevertheless, Senate Majority Leader Francis Pangilinan said it would be difficult to pass the proposed law in two weeks even if Congress resumed session on January 5.

"We need more time to evaluate the full impact of each measure and two weeks is not just enough," he said.

Congress has passed the sin tax bill, which is expected to generate P15 billion to P18 billion in revenues, before adjourning for the holidays. Arroyo has signed the bill into law (RA 9334) last December 20.

The lateral attrition bill grants incentives to revenue-collection officials and employees who meet their respective targets and imposes sanctions on those who fail.

Two other bills being eyed for immediate passage are the two-step increase in the value-added tax from the current 10 percent to 12 percent and the rationalization of fiscal incentives.

The rest of eight bills the Arroyo administration has lined up for Congress's consideration are the franchise tax on telecommunications companies, the adoption of gross income taxation, P2 increase in tax on petroleum products (except liquefied petroleum gas which will be taxed only up to 50 centavos), and general tax amnesty for delinquent individual and corporate taxpayers. (JMR/With JPM)

(December 30, 2004 issue)
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