MANILA, Philippines — The consumer group SUKI or Samahan at Ugnayan ng mga Konsyumer Para sa Ikauunlad ng Bayan (SUKI) responded to the country’s economic managers’ fear that a wealth tax will drive away investors.

“Ang wealth tax ay usually direct tax sa mga pinakamayayamang citizen, kaya ibig ba nilang sabihin mangingibang-bansa ang mga local na giant oligarchs? Either way, hindi dapat ikatakot ng gobyerno kung maayos ang sariling stream of revenues ng bansa from equitable and just sources such as progressive tax, strong agriculture and local industries, robust jobs, and households with good purchasing power.”

This response follows Finance Secretary Ralph Recto’s public opposition to recent wealth tax proposals put forward by certain militant groups and international and local NGOs.

Recto stated that a new tax policy targeting the wealthy is no longer necessary, asserting that there are already enough taxes. He insinuated that the government cannot show hostility toward the wealthy, as they provide major capital for most economic activities in the country. “Why should we penalize those who are working hard?” Recto asked.

Recto’s stance seems to echo that of his predecessor, former Finance Secretary Carlos Dominguez, who previously told the media that taxing the wealthy could drive capital out of the country.

In 2022, the Makabayan bloc proposed House Bill No. 258 to impose a 1-3% tax on super-rich individuals with a net value of taxable assets exceeding 1 billion. The measure was expected to generate P236.7 billion yearly from the top 50 richest Filipinos alone. However, this proposal was rejected by the government.

Economic managers worldwide are clamoring to tax the wealthy during these times of scarcity to address global inequality. In the Philippines, local and international NGOs share the same sentiment, arguing that the time to impose a wealth tax is now, noting that at least nine Filipino billionaires possess more wealth than half of the entire population. Proponents argue that the imposition of a wealth tax could help reduce the country’s ballooning budget deficit.