On rising government bond rates, US public debt and war

Positive economic news is hard to find these days.

- BIENVENIDO S. OPLAS, JR.

Nonetheless I consider these reports in BusinessWorld as positive news, all published on March 17: "Slightly positive business sentiment signals 'cautious optimism' in the Philippines," "House approves bill allowing Marcos to suspend or cut excise tax on fuel," "Senate approves bill authorizing President to temporarily reduce or freeze fuel excise," and "PHL in talks with China to obtain more fertilizer.I believe that the government should cut the various oil taxes under the Tax Reform for Acceleration and Inclusion (TRAIN) Act of 2017 (RA 10963), implemented in 2018-2020, which made the tax on diesel go from zero to P6/liter, gasoline from P4 to P10/liter, LPG from zero to P3/kilo, and so on.

Sure, revenue will decline slightly, but government has windfall revenues from higher VAT collection on oil products — while the VAT on P60/liter diesel will garner it P6.60/liter, VAT on P90/liter diesel will give the government P10.80/liter. That will help compensate for the temporary removal of the diesel excise tax of P6/liter.

Another measure is to have spending cuts on certain sectors and agencies, like climate and warmongering agencies and departments.