Economic Stimulus on its Way
Author Atty. Mary Elizabeth M. Belmonte Date May 07, 2020
On 30 April 2020, Attys. Rosalia S. Bartolome-Alejo and Mary Elizabeth M. Belmonte joined the first online General Membership Meeting of the Tax Management Association of the Philippines (TMAP). Following the usual monthly agenda, Atty. Romeo H. Duran gave his President’s Report detailing the efforts of TMAP in pushing for the extension of the tax deadlines due to the implementation of the Enhanced Community Quarantine (ECQ). He also mentioned that the International Tax Conference of the Asia-Oceana Tax Consultants’ Association or AOTCA initially scheduled in November 2020 will be moved to September 2021.
The guest speaker, Honorable Rep. Stella Luz A. Quimbo of the Second District of Marikina City, discussed the Php370B Economic Stimulus Package to cushion the effects of COVID-19 and ECQ on the Philippine economy.
In her study based on a 45-day lockdown, Rep. Quimbo estimated a loss of Php18B for each day in lockdown. Thus, there is a need for the Philippine Government to input Php370B into the economy as stimulus package to revive it immediately. The stimulus package shall provide assistance to businesses in the form of compensation for payroll costs during the ECQ, capacity-building for businesses to recover, zero interest loans to boost liquidity, and “proportional assistance” or rational scale of assistance. Rep. Quimbo also mentioned the need for digital solutions and involvement of private sectors in the speedy distribution of the stimulus package to the business owners.
Rep. Quimbo emphasized that the Php370B Economic Stimulus Package is necessary to ensure business continuity and to protect the Filipino workers. Her mantra is “Let’s flatten the curve, not the economy”.
Congress is currently finalizing the Philippine Economic Stimulus Act as proposed by Reps. Quimbo and Joey Salceda.