Senator Ralph G. 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)

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