Philippines' Duterte distracted by drugs

Share

• Copy link
• Facebook
• X
• Linkedin
• Whatsapp
• Pinterest

Share this article

Join the conversation

Follow us

Add us as a preferred source on Google

Newsletter

Get the MoneyWeek Newsletter

Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.

Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners or sponsors

---

By submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over.

You are now subscribed

Your newsletter sign-up was successful

---

Want to add more newsletters?

Twice daily

MoneyWeek

Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.

Signup +

Four times a week

Look After My Bills

Sign up to our free money-saving newsletter, filled with the latest news and expert advice to help you find the best tips and deals for managing your bills. Start saving today!

Signup +

---

An account already exists for this email address, please log in.

Subscribe to our newsletter

When Rodrigo Duterte was elected president of the Philippines last May, he promised a war on drugs. His crackdown "has seen more than 7,000 drug suspects killed by police, vigilantes and rivals (the three categories overlap)", says The Economist. It has overshadowed his tenure so far, which is a pity: there are other policies he heralded that could improve the economic outlook.

A tax-reform bill before the legislature proposes lowering the top personal income-tax rate from 32% to 25% and raising the tax-free income threshold while increasing indirect taxation. A second would trim corporation tax from 30% to 25%.

These measures should lower the incentive to dodge taxes, raise cash, and entice foreign investment. The money is supposed to be put towards infrastructure, on which the Philippines spent a mere 2% of GDP in the 1980s and 1990s. Duterte plans to raise this figure to 5%-7%.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

However, the worry now is that he has become so distracted by his drug war he now plans to reinstate the death penalty that he won't get round to crucial reforms. Investors will be keeping a wary eye on him this year.