Recto warms to wealth tax

While the previous administration warned that imposing a “wealth tax” on the rich could trigger capital flight and tax avoidance, Finance Secretary Ralph G. Recto—the chief economic manager of the Marcos Jr. administration—said he would support Congress if it proposes such a measure.

- By DERCO ROSAL

“Let that matter be debated in Congress. If lawmakers pass it [into law], I will support it,” Recto told reporters on the sidelines of the Cabinet-level Development Budget Coordination Committee (DBCC) briefing on the proposed P6.793-trillion 2026 national budget at the House of Representatives on Monday, Aug. 18.

This was Recto’s response when asked regarding his perception on the risks that a wealth tax could have on high-net-worth individuals (HNWIs). Recto also deferred to Congress when sought for his opinion on whether or not a wealth tax would discourage HNWIs from investing.