Tuesday, July 29, 2008 Councilor doubts government's dependence on VAT By Jane Cadalig
A LOCAL legislator in Benguet expressed reservations on government's "dependence" on the collection of Value Added Tax (VAT) as means of sustaining developments.
Itogon Councilor Oscar Camantiles said aside from focusing too much on VAT collection, which he said strikes most on the poor, government should look into the taxation law and give more attention to the imposition of taxes on Multi-National and Trans-National Corporations (MNC,TNC).
"I would be better if the government (focuses more) on the taxation of MNCs and TNCs which should include the removal of tax holidays enjoyed by these companies," Camantiles said.
He said he is not totally against the imposition of VAT and moved for the lowering of the 12 percent imposition, especially on basic commodities.
"I have reservations on government's dependence on VAT as means to stabilize the buffer fund and to sustain our economic gains and development, but I give the President the benefit of the doubt. We will see what we can do in the local government to realize the President's visions," he said
He issued the view in reaction to President Gloria Macapagal-Arroyo's State of the Nation Address (Sona) last Monday.
Arroyo's critics have been calling for the lifting of the VAT, particularly on oil and power, on claims this is one of the culprits of the economic crisis besetting the country today.
The President, however, remained firm lifting VAT would mean taking away the P86.56 billion revenues which is now being used to fund pro-poor programs.
Camantiles upheld the President's challenges, which include the passage of more stringent anti-graft bill and bill of rights for the consumers. "I believe these requests for legislations are just right.
Benguet Governor Nestor Fongwan meanwhile stood by the President's assertion that the country's improving economy was overtaken by the global crisis.
In past Sonas, Arroyo emphasized the development of the Cordillera, particularly the region's infrastructure.
Among the President's priorities as outlined in her 2006 and 2007 Sonas include the completion of Halsema Highway and Baguio-Bontoc-Tabuk Road and the establishment of post-harvest facilities for vegetables.
Fongwan was with Mountain Province Governor Maximo Dalog, Abra Governor Eustaquio Bersamin and Kalinga Governor Floydelia Diasen at the Batasan where the President delivered her Sona.
The Police Regional Office-Cordillera for its part, sent more than 200 personnel to help the more than 7,000 policemen tasked to secure the Sona.
But unlike in the National Capital Region (NCR), tension between rallyists and men in uniform was not felt in the region.
PRO-Cordillera police community relations head Arnie Dean Emock said there were no threats on security with regards to the delivery of the Sona in the region.
