Highlights of the Talk of Prof. Manhit on “Understanding the Duterte Presidency”

“DUTERTISMO” OR DUTERTE’S RADICAL CHANGE

• A populist President who articulates the frustration, discontent, and desperation of regular people;

• Promised to fix a dysfunctional government and unresponsive public services;

• Strong Man Politics: Tough and unafraid to speak his mind and tested the limits of Filipino civilized behaviour.

“People have come to trust since July 2016 his leadership style, often marked by a consistent exercise of political will, a deep personal connection with constituents, and an ability to define some key visions for the country.”

“TWO YEARS OF DUTERTISMO”

“With the promise of radical change and adherence to the rule of law, Mr. Duterte is a leader who wants to outrun the ‘past’ and break from its traditional practices. To make the difference, he has initiated actions and policies to disjoin from the traditional practices and has continued to attract popularity by appealing to the nationalistic and sectoral sentiments of the population. What makes Pres. Duterte an easy target of political scrutiny is his overarching tendency of not displaying appropriate public relations and diplomacy. As a president, a national leader should not plainly approach political dissent and opposition like a local executive bereft of political astuteness, strategic thinking. and statesmanship.” The Changing Game, BusinessWorld (27 July 2018)

RISKS OR OPPORTUNITIES IN 2018

1. Populist Leadership with the support of a Legislative “Super Majority”

2. “High Expectations” Growing Burden or Responsive Delivery of Public Services

ECONOMIC GROWTH 2018

• The economy grew by 6% during the 2nd quarter of 2018, interrupting 10 straight quarters of growth above 6.5%

• The lower-than-expected growth was attributed to the temporary closure of Boracay, stricter regulations on mining and aquaculture, and poor agriculture performance

• Manufacturing, trade, and construction were key drivers of growth for the quarter

TAX PACKAGE 2 HIGHLIGHTS

• Lower the corporate income tax rate from 30% to 25% by 2022

• Rationalize investment tax incentives

• Simplify tax rules for corporations to improve compliance

• Expand the function of the Fiscal Incentives Review Board (FIRB) to serve as the overall administrator of all investment promotion agencies

• DOF to chair the FIRB as the custodian of fiscal prudence and responsibility

• Broaden the tax base by repealing 123 special laws on investment incentives

OTHER PROSPECTIVE TAX PACKAGES

• Package 1B: Estate and General Tax Amnesty, Motor Vehicle Users Charge, Bank Secrecy Law, Automatic Exchange of Information

• Package 2 Plus: Taxes on tobacco, alcohol, mining, coal and casinos

• Package 3: Property taxation

• Package 4: Passive income and financial taxes