Recto

Senator Ralph Gonzalez Recto learned the numbers and nuances of
lawmaking as
one of the youngest solons. The diligence he puts into each law he
shepherds
continues to gather him respect from peers. The halls of the Senate
have
heard his reasoning that all these long years remains honest and
logical,
yet spirited.
His independence makes him a quintessential but well-loved curmudgeon,
the
critic that makes us see through our faults in well thought out
statements.
He can never be boxed into a myopic position to the disdain of his
critics.
He is not one to shun the rough waters of public opinion when he
tackles
unpopular measures. He faces them head on, but in ways that disarm the
enemy. Whoever initially opposes him is converted into an ally.
Being the youngest Senator of the 12th Congress has not deterred him
from
ably leading the powerful Ways and Means committee that has been
traditionally assigned to senior Senators. He led the unmasking of
foreign
hands subverting the work of the Senate and other government offices.
Likewise, a deep sense of equity and fairness defined his balanced
handling
and scrutiny of tax measures. In all cases, he assigns great value on
the
peoples' needs in the face of contending government and industry
concerns.
He is also identified with warnings about ballooning budget deficits,
public
debt and unemployment, among others.
He co-chairs the Congressional Oversight Committees on the Proper
Implementation of the National Internal Revenue Code (NIRC) and on the
Official Development Assistance (ODA). Sensitivity to the welfare of
government employees also marked his chairing of the Accounts committee
dealing with the Senate budget.
During the first half of his six-year term, he has already fathered
five
major laws with positive impact for consumers, small entrepreneurs,
workers
and industry. These are the Rent Reform Act of 2001, Film Development
and
Incentives Board, Barangay Micro Business Enterprises Act of 2002,
Special
Purpose Vehicle Act of 2002 and the Rationalization of Excise Tax on
Automobiles.
Other major laws he sponsored which dealt with banks contribute to
stable
interest rates and accessible credit. These are: Excluding Several
Services
from the Coverage of VAT and Reimposing the GRT on Banks and Non-Bank
Financial Institutions (FI) Performing Quasi-Banking Functions and
other
Non-Bank Fl Beginning Jan. 1, 2004; Rationalizing the Provisions of the
Documentary Stamp Tax (DST) of the NIRC; and Tax Exemption on Offshore
Banking Units and Foreign Currency.
The Special Purpose Vehicles Law helped borrowers to buy back
repossessed
properties and for banks to unload Non-Performing Loans. Both borrowers
and
banks enjoyed the same fee privileges and tax incentives. This
prevented
mass ejection from mortgaged homes, Likewise it encouraged banks to
offer
more loans.
The Excise Tax on Automobiles Law helped increase tax collection
through a
simple and transparent system. It whet consumer and entrepreneur
appetite
for new cars and utility vehicles. This clearly helped preserve tens of
thousands of jobs in the automotive industry.
As he did during the first half of his term, Senator Recto tops his
colleagues in the number of bills enacted into law. Whatever the nature
of
the law, he sees to it that interests of less-privileged Filipinos are
served.
The Rental Reform Law is one of the social legislation with direct
beneficial impact to middle and lower classes nationwide. By putting a
cap
on the allowable increase in rent, the law protected residential
tenants and
small mom-and-pops businesses against skyrocketing rent for three years
until 2008. Likewise, millions of students were spared excessive
dormitory
fees.
For safe and modern passenger travel and cargo shipment, Recto
sponsored the
Domestic Shipping Act and Overseas Shipping Act. These help lower costs
of
shipping operators that translate to stable passenger fares and cargo
freight.
The Sin Taxes Law or excise taxes on alcohol and cigarettes responded
to
public health concerns in addition to raising government revenue. It
also
gave equitable treatment to both imported and domestic goods that in
turn
preserved jobs among manufacturers of foreign brands as well as
indigenous
ones.
Increased tax revenues are attributed to the Lateral Attrition Law
which
granted rewards whenever the BIR or Customs surpass their collection
targets.
The recently implemented Reformed Value Added Tax Law will raise more
revenues. Recto ensured that portions of the incremental collection
from VAT
will be allocated to health and education. Most important, the R-VAT
impressed our creditors with our ability to erase our deficit such that
they
raised the Philippines' credit-worthiness rating.
Confident of expanding government revenue, he proposed increasing the
compensation of government workers. He proposed a P2,000 increase in
monthly
wages across-the-board and a P1,000 additional monthly allowance, He
knows
that apart from easing workers' economic burden, better pay would
result to
better public service and governance.
Notching good scores is not strange to him ever since he joined
Congress as
the youngest solon in 1992, winning succeeding terms in landslide
victories.
Senator Recto holds two masteral degrees - one from the University of
the
Philippines in Diliman for Public Administration and the other from the
University of Asia and the Pacific for Strategic Business Economics.
Born on January 11, 1964 in Manila, he is married to multi-awarded
actress
Vilma Santos-Recto, now Mayor of Lipa City. He is a doting father to
Ryan
Christian and Luis Philippe "Lucky" Manzano.
His political lineage commenced from the late nationalist statesman
Claro
Mayo Recto, himself descended from the patriotic Mayo and Recto clans
of
Luzon, His father Lawyer Rafael Recto was an Assemblyman in the Regular
Batasang Pambansa. Elder brother Richard is now vice-governor of
Batangas.

REPUBLIC ACTS AUTHORED BY SENATOR RALPH G. RECTO
In his three terms (from 1992 to 2001) as Member of the House of
Representatives, most of his legislative measures which were enacted
into
law dealt with economic reforms and poverty alleviation, among which
are the
Special Economic Zone Law (RA 7916); the Comprehensive Tax Reform Law
(RA
8424); Social Reform and Poverty Alleviation Act (RA 8425); Amendments
to
the Special Economic Zone Law (RA 8748); Regional Headquarters Law (RA
8756); Retail Trade Liberalization Law (RA 8762).
During the 13th Congress the following legislations were enacted: RA
9337
(EVAT); RA 9333 (LATERAL ATTRITION); RA 9334 (SIN TAX); and on the 12th
Congress : RA 9301 (PHILIPPINES OVERSEAS SHIPPING); RA 9295 (DOMESTIC
SHIPPING DEVELOPMENT ACT); RA 9294 (FCDU); RA 9243 (DST) ; RA 9238
(GRT) RA
9224 (EXCISE on AUTOMOBILES); RA 9182 (SPV); RA 9178 (BMBE); RA 9167
(FILM
DEVELOPMENT COUNCIL) and RA 9341 (RENT CONTROL).
1. RA 9337 (R-EVAT) - This law is part of the bigger effort to address
the
country's budget deficit The need to increase our tax collection to
sustain
the government's delivery of basic services while reducing, government
expenditures, Value-Added Tax replaced the more burdensome and
cascading
sales tax. It is a tax on consumption levied on the sale of goods and
services and on the imports of goods into the Philippines. (February 1,
2006)
2. RA 9335 (LATERAL ATTRITION) - The law provides for a system of
rewards/incentives which shall cover all officials and employees of the
BIR
and the BOC whenever they surpass their collection targets. (January
25.
2005)
3. RA 9334 (SIN TAX) - Sin Tax is a form of excise tax on alcohol and
tobacco products. It imposes higher rates which will raise revenue for
the
government to fund government health programs. Sin Tax is imposition
Distilled Spirits, Wines, Fermented Liquor, Tobacco Products, and
Cigars and
Cigarettes. (December 21, 2004)
4. RA 9301 (PHILIPPINES OVERSEAS SHIPPING) - This law will spur the
long
over-due growth and development of our Philippine flag carriers.
Thousands
of world-class Filipino seafarers will have employment opportunities
with
Filipino ship owners without need of seeking employment from foreign
shipping lines. (July 27, 2004)
5. RA 9295 (DOMESTIC SHIPPING DEVELOPMENT ACT) - This law supports the
country's shipping industry including ship-building and repair which
provides much needed infrastructure for economic activity, and
development
by encouraging a modernized and safe domestic merchant marine fleet
through
fiscal incentives. (May 3, 2004)
6. RA 9294 (FCDU) - This law encourages foreign currency deposit units
(FCDU5) and offshore banking units (OBUs) to continue their presence
and
operations in the country. This will help stabilize the value1of the
peso
against other currencies because they provide a secondary source of
foreign
currency reserves. (April 28, 2004)
7. RA 9282 (CTA) This law elevated the rank of the Court of Tax Appeals
and
expanded its jurisdiction to aid government in collecting from tax
evaders
and smugglers. (March 30, 2004)
8. RA 9243 (DST) - This law "leveled the playing field" for debt and
equity
instruments and provided for lower DST on short-term debt instruments.
This
encourages long-term savings by exempting from DST long-term insurance
policies and pre-need plans while imposing a DST on other evidences of
indebtedness such as special savings accounts usually maintained by
wealthy
depositors to generate an expected revenue collection which will
translate
to more services and benefits given to the Filipino people. (February
17,
2004)
9. RA 9238 (GRT) - This law restored the Gross Revenue Tax on banks and
non-banks financial institutions thus resulted into a more efficient
collection of the tax on the bank sector. The more productive GRT will
result in more revenues for government services. This law solved the
more
problematic determination of bank services that should be covered by
the
Value Added Tax. (February 5, 2003)
10. RA 9224 (EXCISE ON AUTOMOBILES) - This law provided for a more
fair,
equitable and progressive as tax rates are based on price such that
lower-priced vehicles are taxed at lower rates and expensive vehicles
at
higher rates. Under this law, the tax rate on lowest-priced vehicles is
reduced from 15% to 2%. The more affordable prices offered in the
market
will serve to curb smuggling and many of our countrymen will be
encouraged
to buy vehicles which will result to greater tax revenues. (August 29,
2003)
11. RA 9182 (SPV) Special Purpose Vehicle. - This law helped not only
the
investors but also the ordinary bank borrowers in recovering their
foreclosed assets by eliminating friction costs in the disposition of
their
non-performing assets and loans. The same privileges are likewise
extended
to any individual who wishes to buy such assets. This stabilized the
banking
sector by freeing up their valuable resources to more productive uses.
(December 3, 2002)
12. RA 9178 (BMBE) - This law promoted small businesses in barangays
that
will create many jobs for the poor. It encourages the informal sector
to
merge with the format sector through the grant of incentives and
absence of
bureaucratic restrictions, and at the same time increase their
productivity
and contributions to the economy by widening their access to credit,
capability building, training and marketing assistance. (November 13,
2002)
13, RA 9167 (FILM DEVELOPMENT COUNCIL) - This law boosted the film
industry
through the grant of rewards and incentives to locally produced movies
of
high quality. (June 7, 2002)
14. RA 9161 (RENT CONTROL) - This law prevented unbridled increases in
rents
of residential units and gave protection to low-income tenants and
boarders,
especially students. The rent control law covers all residential units
in
the National Capital Region and other highly urbanized cities with
monthly
rental not exceeding Ten Thousand Pesos (P10,000.00) and all other
areas
with monthly rental not exceeding Five Thousand Pesos (P5,000.00).
(December
21, 2005)
15. RA 8762 (RETAIL TRADE LIBERALIZATION) - This law restricts foreign
investment in certain sectors to give protection to Filipino capital
thereby
aborting capital monopoly which results to unfair competition and
unfair
trade practices, This law creates a competitive and free market
environment,
employment generation and livelihood. (March 7, 2000)
16. RA 8756 (REGIONAL HEADQUARTERS ACT) This law provides for the
exemption
from income tax of regional or area headquarters established in the
Philippines by multinational companies and which headquarters do not
earn or
derive income from the Philippines and which act as supervisory,
communications and coordinating centers for their affiliates,
subsidiaries,
or branches in the Asia-Pacific Region and other foreign markets. The
regional operating HQs shall be subject to a tax rate of 10% of their
taxable income, provided that any income derived from the Philippine
sources
by the RAHQ when remitted to the parent company shall be subject to the
tax
on branch profit remittances. (November 23, 1999)
17. RA 8748 (PEZA) - This law provides for fiscal and non-fiscal
incentives
to businesses/enterprises who will register with PEZA as Ecozones. The
creation of Ecozones will boost development in the countryside, provide
local employment and promote tourism. (June 1, 1999)
18. RA 8425 (NAPC) - This law is known as the "Social Reform and
Poverty
Alleviation Act. The law mandates the NAPC to enhance the programs,
approaches and strategies to strengthen the partnership between
government
and the basic sectors towards alleviation of poverty and sustained
development, hence empowering the marginalized sector of society and to
address the issues greatly affecting the marginalized sectors such as
farmers and landless rural workers, fisherfolk, indigenous peoples and
indigenous communities, workers in the informal sector, urban poor,
members
of other disadvantaged groups such as the women, children, youth,
persons
with disabilities, the elderly, and victims of natural and man-made
calamities. (June 3, 1998)
19. RA 8424 (TAX REFORM ACT OF 1997) - This law amends the National
Internal
Revenue Code in line with the policy of the State to promote
sustainable
economic growth through the rationalization of the Philippine internal
revenue tax system including tax administration. (December 11, 1997)
20. RA 7916 (SEZA) - This law grants preferential tax treatment to
enterprises located in special economic zones (also referred to as
ecozones)
to boost local economy and attract investors. Due to the more
attractive,
tax incentive package investments in these areas are spurred and
consequently lead to the development of contiguous areas due to the
improved
infrastructure and availability of employment. In turn tax revenues are
generated from allied services and employment. This compensates for the
taxes waived on foreign investment income because of the tax
incentives.
Said revenue generated contributes to government funds for social and
welfare services. (February 24 1995)