Senator taps councilors for economic reforms

SENATOR Sherwin Gatchalian has tapped the councilors around the country to help push for his initiatives in economic reforms.

Gatchalian on Thursday, June 15, told more than 2,500 councilors that he needs their support for, among others, the electric cooperatives calamity fund and economic zones for provinces.

He said one of the most important powers of the council members is to issue a resolution of support.

With the resolution from various city and town councils, it would give weight to the economic reforms he is pushing, Gatchalian said.

He added that the bills, which are geared towards helping the people, are now in the “advance stages” in the Senate.

Reforms

Gatchalian, chairman of Senate committees on energy, and economic affairs, said that the proposed calamity funds for electric cooperatives aims to exempt calamity victims from being charged with loan interest and penalties from electric cooperatives.

“If electric companies are in trouble (due to calamities), they borrow money and charge the member-consumers with interest. It’s not right because the consumers are the victims, but they still get charged with penalties and interests,” Gatchalian said.

On the proposed economic zones for provinces, Gatchalian said most of the economic zones in the country are located in highly-urbanized enters and rich localities.

He explained that if an economic zone (ecozone) will be established in a locality, it could generate jobs and revenues through taxes, adding that development would not only be concentrated in one area, but in other localities as well.

The senator said creating an ecozone will harness the potential of the localities, though, he said the process would take time.

Sitio electrification program

Gatchalian also urged the councilors to help the government in identifying areas that have no access to electricity.

The senator noted that 14 percent of all sitios in Luzon have no electrical connection, 12 percent in the Visayas, and 17 percent in Mindanao.

He said the Philippine Councilors League meet is a good venue to cascade down the initiatives of the government as some of the local officials are not yet aware of this program, which needs a funding of P35 billion.

“It’s going to be a five-year program. Our population keeps growing so the required fund increases. But this will not happen overnight. We will definitely plan this in the next few years. Hopefuly, in the next five years, all these sitios will be energized,” Gatchalian said.

The senator asked the councilors to submit resolutions to help these localities in terms of electrification.

“We will talk to the National Power Corporation and Department of Energy so funds will be allocated and these areas will be energized,” Gatchalian said.

Tax reform package

Gatchalian said the public has to look at the proposed tax reform as “one package.”

He said almost 90 percent of the workforce will benefit from income tax cut though he pointed out that gas consumers will pay for the excise tax.

“We’re just transferring the burden from the middle class and poorer constituents to those who can afford,” Gatchalian said.

The senator added that he is expecting adjustments on the tax reform bill when it will be tackled in the Senate.

On the proposed reduction of excise tax on sugar sweetened drinks, Gatchalian said: “We have to make sure that jobs will not be affected.”

He said the excise tax on sugar sweetened beverages will be detrimental if many will lose their jobs.

“My priority is to determine whether jobs will be affected or not. This is a new proposal which we have not discussed in the Senate. We have to talk about it thoroughly,” he added.