World, Asia - Pacific

Philippines eye tax evaders to fund Marawi rebuilding

President says fines on corporate tax cheats will fund reconstruction of city damaged in 4-month siege

22.09.2017 - Update : 22.09.2017
Philippines eye tax evaders to fund Marawi rebuilding FILE PHOTO - MARAWI, PHILIPPINES

By Roy Ramos

ZAMBOANGA CITY, Philippines

The reconstruction of Marawi City -- ravaged by four months of fighting -- will come from tax-evading companies, President Rodrigo Duterte said late Thursday.

Much of the provincial capital of Lanao del Sur has been left in ruins by fighting between security forces and pro-Daesh militants from the Maute group and Abu Sayyaf, who seized the city on May 23.

Small pockets of resistance remain but the military has said it expects to take those in the coming days.

During a visit to Marawi, Duterte said he would fund reconstruction with money from “guys who didn’t turn over their proper taxes”, the Rappler news website reported Friday.

He singled out the Mighty Corporation, a tobacco firm that faces a 37.88 billion Philippine peso ($749.3 million) tax evasion charge, as a source for much of the necessary financing.

The corporation has already offered to pay 25 billion pesos ($494.3 million) to cover its tax shortfall, according to the Department of Finance, and Duterte has threatened to arrest the owners.

“We will need a lot of money to rebuild,” Duterte said, according to Rappler. “I have promised that to the people of Marawi and I will comply and abide by my promise.”

Earlier this month, Defense Secretary Delfin Lorenzana told a Senate committee that Marawi’s “rehabilitation” would take at least three years and cost around 50 billion pesos ($988.1 million).

Australia, China, the EU, Japan, Thailand and the U.S. have all promised aid to help rebuild the city.

Duterte placed the southern island of Mindanao under martial law following the attack on Marawi. On Thursday, he said that would be lifted “when it’s safe”.

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