BY REGINA BENGCO

PRESIDENT Arroyo yesterday said 2007 was the year of the Philippines’ economic turn around came about because the business community did not support destabilization attempts against her government.

Arroyo, in her speech at the 5th biennial convention of the Chinese-Filipino Business Club Inc. at the Manila Hotel, said 2007 was also the year where she made tough choices to raise tax collections and run a tight budget.

She reiterated her goal to turn the Philippines into a First World country in 20 years.

"In 2007, we made a huge down payment toward that day. We aim to make sure we keep it that way throughout the duration of my term," she said.

Arroyo said 2007 was not always smooth sailing, especially in the political sector because the November 29 standoff at the Manila Peninsula gave government a black eye.

"Half of our battle in the Philippines is to overcome the self-indulgent political theatrics that send the wrong messages. The reality is that we have become a stronger, more stable nation as these (acts) of political shenanigans fell flat with you and with the people," she said.

She said the people are tired of political sideshows and want peace and order and security.

Donald Dee, chairman emeritus of the Philippine Chamber of Commerce and Industry, said the business community is "very tired" of talks of destabilization and will not waste its time dealing with such talk.

Dee said the PCCI is trying to help government re-orient the tax system and base it on consumption instead of income. He said his group is also pushing for increased taxes on luxury items and "sin" products like alcohol and tobacco.

He said additional revenues from higher sin taxes would be able to support the transport sector even if world crude prices reach $100 a barrel. He said the PCCI position on reorienting the tax system is supported by a survey of the Social Weather Stations.

He said the PCCI proposal would be submitted to the President in three weeks.

He said the PCCI is also studying a possible tax on "texting" because the 650 million text messages sent per day is a very large source of revenue.