The government can finance cash transfers to the poor

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Finance Secretary Carlos Dominguez III shares his remarks on the oil crisis with President Rodrigo Roa Duterte during a meeting with key government officials at the Arcadia Active Lifestyle Center in Matina, Davao City, March 15, 2022. JOEY DALUMPINES / PRESIDENTIAL PHOTO

(UPDATE) FINANCE Secretary Carlos Dominguez 3 said on Tuesday that the government had raised additional funds that could provide an unconditional cash transfer (UCT) of P500 to the poorest of the population for a period of up to six months.

In an interview on the sidelines of the Philippine Economic Briefing at the Philippine International Convention Center in Pasay City, he said the government can now fund the 41 billion pesos needed for six months of UCT.

In addition to dividends paid by state-owned and controlled companies and collections of value-added tax (VAT) on fuels, Dominguez said additional government revenue comes from cigarette makers buying ahead of time. cigarette stamp tax.

He said that if the price of gasoline was $100 a barrel, the government would be able to collect an additional 20 billion pesos in VAT.

If the price per barrel is $110, as it is now, the additional revenue will be 26 billion pesos, Dominguez added.

On the other hand, the finance chief noted that an increase in oil prices of $120 per barrel would result in an increase of 31.8 billion pesos in VAT revenue – an increase of 34.6 billion pesos. government revenues at 125 dollars a barrel and 37 pesos. 5 billion tax levies at 130 dollars a barrel.

“Even the tobacco companies, we ask them to pay [the stamp tax] in advance and they responded,” he said.

Dominguez added that a company had pre-purchased 10 billion pesos worth of stamp duties.

Due to rising fuel prices following Russia’s invasion of Ukraine, President Rodrigo Duterte asked the Ministry of Finance to find additional funds to increase monthly cash assistance to 500 pesos .

His cabinet’s economic development group said the UCT will cover about 12 million households.


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