“BIR Policy Threatens PHL Peso Value,” Says Author
MANILA, PHILIPPINES - It is no doubt that the Philippine economy is doing well. But with such improvements come a lot of responsibilities. One case in point: the sales of gold which has plummeted by 92% since a year ago as reported by the BSP. Senator Gregorio Honasan Jr. and Representatives Rufus Rodriguez of Cagayan de Oro, Giorgidi Aggabao of Isabela, and Rodolfo Antonio of Nueva Ecija wisely suggested that the BIR change or eliminate the current gold tax.
In essence, the 10% creditable withholding tax imposed in July 2011 by the BIR increased the tax on gold sales 600% (from 2% to 12% total) and the results have not been favorable.
What was not reported until now, however, was how the BIR’s policy is affecting the country’s poorest citizens.
“The effect of the BIR’s current policy is that it’s creating a stealth tax on everyone and it’s harming the country’s poorest most of all,” says David Newby, author of ‘Treasure Islands: Your Guide to Buying and Safely Selling Gold and Silver in the Philippines.’ “Unlike Robin Hood who stole from the rich to give to the poor, this policy is robbing the rich and poor to give to no one and it makes no sense for the country to continue.”
As proven in some studies, the current policy is weakening the value of the Philippines Peso, thus increasing prices on commodities like rice that the poor need to survive. Also, the current BIR gold tax policy has not resulted in increased tax revenues as hoped for. Laments Newby: “Unlike Robin Hood who stole from the rich to give to the poor, this policy is robbing the rich and poor to give to no one and it makes no sense for the country to continue.”
The GOOD news is that BIR chief Kim Henares has the opportunity to now show she is the wise leader President Aquino esteems her to be by heeding the good counsel of Congressional leaders.
“Scrapping the tax on gold sold to the BSP will strengthen the country’s currency with increased gold reserves” says Newby. “This will keep prices of basic staples the country’s poorest need to survive affordable and may even lower prices in the near future. Let’s pray that Henares and the country’s leaders are quick to enact policies that benefit the poorest Filipinos instead of harming them.”
To know more about Newby’s “Treasure Islands” book, go to www.PinoyGold.com/book.
- Contact Information
- David Newby
- Director of Marketing
- CDO GOLD LLC
- (1) (248) 325-8872
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