DOF pushing for 'targeted subsidies' for low-income sectors amid rising oil prices

The Department of Finance said the Philippine government is prioritizing targeted subsidies for the most vulnerable sectors, including public utility vehicle drivers, farmers, and low-income households.

Finance Undersecretary Karlo Fermin Adriano emphasized that while resources are being focused on those most in need, existing measures also provide indirect support to the middle class.

“Ang direksyon ngayon is targeted subsidies. So, gusto namin unahin munang tulungan ‘yung mga nangangailangan talaga,” Adriano said.

He explained that proposals to suspend these taxes could significantly reduce government revenues, which may potentially affect the funding available for social support programs.

“Karamihan ng nagbabayad ng excise (TAX) based on consumption…pinakamalaking nagbabayad ng tax nito ay ang pinakamayayaman. So, kung tanggalin natin ito, we have PhP50 billion, so mayroon tayong PhP50 billion na hindi maibibigay na tulong sa mga vulnerable at middle income classes, ‘yun po ang implikasyon nito,” the DOF official added.

“Kaya ang direksyon po natin ngayon for now is unahin natin ‘yung most vulnerable, but that doesn’t mean that we will not provide for the others, particularly the middle income classes.”

The DOF reiterated that its primary role is to generate revenue to support government programs.

Adriano noted that officials extensively discussed various options to ensure broader assistance coverage for these initiatives.

“Pinag-uusapan ‘yan sa UPLIFT at pinag-uusapan ‘yung ating mga rekomendasyon at mga options kung paano matulungan ang lahat, not just the vulnerable, the poorest of the poor, but also the middle income,” the DOF official said.

-Paraluman News