Oligarchs, taxes, POGOs: Big business and the economy under Duterte

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Tough-talking Duterte applies his selective justice on tycoons and industries. He also leaves a very liberal economy for incoming President Ferdinand Marcos Jr. More in this in-depth piece by Ralf Rivas:

Lucio TanThe Philippine flag carrier paid up just around a month after the Department of Transportation threatened to close NAIA Terminal 2, which is exclusively used by PAL.

Pangilinan returned the frequencies to the government, which were then assigned to Duterte’s longtime friend Uy. Uy’s Dito Telecommunity was theWhile Duterte got some billionaires to pay up, the business community questioned his crass methods and even outright disregard for due process. The two companies eventually gave up their claims and had their respective concession agreements revised, resulting in lower water rates. Business circles questioned the manner how this was done.

Even after the Bureau of Internal Revenue cleared the network of any tax deficiencies, a Congress packed with a “Duterte supermajority” blocked ABS-CBN’s franchise renewal. PIDS researchers found that TRAIN exacerbated Philippine poverty by 0.26 percentage points even with the cash transfers in place. Income inequality also likely worsened due to TRAIN.

Meanwhile, Duterte’s economic team was able to push for the Corporate Recovery and Tax Incentives for Enterprises bill, which lowered income tax rates paid by corporations from 30% to 25%, followed by a gradual reduction to 20% by 2027. It also rationalized tax perks.is this: With fewer taxes to pay, corporations are expected to use their tax savings to hire new workers and expand their operations – a classic example of trickle-down economics.

 

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