Roxas: Gov't should sacrifice, not the people

Contrary to what was presented during the SONA last Monday, Senator Mar Roxas said the value-added tax (VAT) on oil is not the “be-all and end-all” in solving widespread poverty and hunger.

“Removing the VAT on oil will not spell the end of government social programs. Hindi SONA ang nangyari kahapon kundi isandaang dahilan kung bakit dapat ipagpatuloy ang VAT sa langis (What happened yesterday was not a SONA but a hundred reasons why VAT on oil should continue),” he said.

“Bakit naman na ang sentro ng buong programa ng Pangulo at ng gobyerno ay itong VAT sa langis, na decimal point lang sa buong budget ng gobyerno? (Why was VAT on oil the center of the President’s and the government’s whole program, while it’s only a decimal point of the whole budget?)” he added.

The Liberal Party President said the country’s leadership should do what is most appropriate to face the crisis its people face everyday. Unfortunately, he said the government is sticking to a solution that worked to solve a previous problem--the fiscal crisis--but is now an added burden to consumers and the transport sector.

“Kung tayo ang namumuno, ang gobyerno ang magsasakripisyo at hindi ang mamamayan. Gobyerno ang magsisikap na ayusin ang koleksyon at alisin ang mga gastusing hindi kailangan, hindi sasakalin lalo ang naghihingalong mamamayan (If we’re in charge, the government would be the one to sacrifice and not the people. The government should be striving to make collections and spending efficiently, and not further choking our people),” he said.

“The government must make a sacrifice by removing VAT on oil, improving collections of taxes and duties, and plugging the leaks in government spending. That’s the ‘tough decision’ that the government has yet to make,” he stressed.

“Now, the situation is different. We should not close our eyes or refuse to listen to other opinions and continue taking a medicine that’s not appropriate anymore,” he added.

The Chairman of the Senate Committee on Trade and Industry also stressed that the P80-billion foregone revenue estimate of government if Oil VAT is removed is the result of “wrong arithmetic,” as this does not take into consideration the 45% of Oil VAT that can be recovered by the government from manufacturers after a few months.

“The government could again collect VAT when people consume using the savings when we remove VAT on oil. So instead of continuing to squeeze our people dry so that the government will have money to give away, why don’t we just leave this VAT on oil in the hands or pockets of our people?” he said.

Tuesday, July 29, 2008 | posted in e-vat, food crisis, mar roxas, oil, pgma, philippines, president, sona, transport sector | 0 comments [ More ]

Senator Roxas seeks exemption of OFWs from documentary stamp taxes

Now here’s good news for Overseas Filipino workers and their families, who are burdened by a weaker United States dollar and rising costs of goods.

Senator Mar Roxas is seeking to remove the documentary stamp tax from remittances of OFWs, to give them greater purchasing power amid this time of skyrocketing prices of food and transport.

At present, for every remittance an OFW makes, a DST of 0.15% is collected by the government. “To some, the imposition may be minuscule and insignificant. But to OFWs and their families, such imposition becomes another financial burden,” said Roxas, author of Senate Bill No. 2479, that removes the DST on OFW remittances.

He noted how at present, market prices of basic commodities have increased significantly, with chicken already at P120 per kilo, beef brisket at P180 per kilo, pork liempo at P170 per kilo, and bangus and tilapia at P80-P90 per kilo, all of which have increased by an average of P10 compared to the prices in 2007.

“Every peso saved can make a big difference for the average Filipino family. Removing the DST from OFW remittances can enable the families of overseas workers buy additional food or save this amount for other purposes,” Roxas said.

The Liberal Party President noted that OFWs remitted $14.7 billion in 2007, higher than the $12.8 billion remitted in 2006. This number is seen to rise further this year to over $16 billion, in part due to the weakening of the United States dollar. Ironically, a weaker dollar has also led to less purchasing power of OFWs’ money when their earnings are spent locally. The Philippine peso appreciated from P56:$1 in 2006 to P40:$1 earlier this year, and is now at P44.23:$1.

“As if high prices of oil and rice were not enough, even the currency that our OFWs earn in has diminished in value. We need to give these ‘new heroes’ the support that they need and deserve, understanding their great contribution to our economy,” he said.

Roxas’ bill amends Sec. 181 of the Tax Reform Act of 1997, on the imposition of DST, by exempting from DST payment money transfers made abroad by OFWs.

Sunday, July 27, 2008 | posted in food crisis, mar roxas, ofw, philippines, president, transport sector | 3 comments [ More ]

Roxas: Oil VAT suspension win-win solution for transport, consumers

Senator Mar Roxas described the proposed zero value-added tax (VAT) on oil as a "win-win" solution to the woes of the transport sector and of consumers alike due to the sky-high prices of petroleum products.

"Kung gusto ng gobyerno ng 'win-win' na solusyon, suportahan na nito ang pagtanggal ng VAT sa langis. Agad na makikinabang dito ang parehong tsuper at pasahero, kaya hindi ko alam kung bakit ipinagdaramot pa rin ito (If the government wants a 'win-win' solution, then it must immediately support the removal of VAT on oil. Both jeepney driver and commuter stand to immediately benefit from this)," he said.

"The disposable incomes of our people continue to shrink due to the high cost of food, oil, energy and their other daily needs. If we don't heed this cry for immediate relief, our economy is in danger of slowing down," he stressed.

Roxas said this, as he criticized the government for its incoherent policy in issuing a provisional fare hike order, only to hold it back a few hours afterwards.

"Hindi magandang urong-sulong ang pamahalaan sa panahon ng krisis. Umasa ang ating mga tsuper, kinabahan naman ang ating mga pasahero. Sa huli, hindi nakatulong ang gobyerno (The government should not be indecisive in times of crisis. They made our jeepney drivers expectant and our commuters anxious. In the end, the government was not able to help either)," he added.

"What is a fair solution? It is for government to assume the responsibility of fixing its finances without having to unjustly burden our transport sector and our consumers as a result of this VAT on oil," he said.

The Chairman of the Senate Committee on Trade and Commerce noted that the government is already on the right track with its decision to study whether to suspend, reduce or eliminate altogether the 12% VAT on oil and energy.

"That's a big leap from its original stance for an automatic rejection of any proposal to touch the VAT law. Ultimately, they have to heed the clamor of the people for the suspension of the VAT on oil as a way to keep the political and economic environment stable," he said.

"I call on the House to bring the matter to the table and start hearing all positions, especially that of our consumers," he added.

He noted that while the Senate has already started deliberations on bills seeking to suspend or remove VAT on oil and energy, it could not move forward until the House approves its own tax measures.

Tuesday, May 20, 2008 | posted in e-vat, mar roxas, oil, pgma, philippines, president, transport sector | 0 comments [ More ]