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Monday, April 04, 2005
Wave of protests seen to greet VAT
By Lizanilla J. Amarga
MILITANT groups vowed to stage more protest demonstrations here against Malacañang's proposal to increase the value added tax (VAT) from 10 percent to 12 percent.
This came as Senator Nene Pimentel Jr. warned the Arroyo government of a social backlash over its insistence to push ahead with the VAT increase despite its burdensome effects on the common people who are already reeling from economic hardships.
Sanlakas-Iligan, Bayan regional spokesman Nero Vallar and Bayan Muna local leader Ryan Guerrero vowed that they will continue their fight against the VAT bill by intensifying their information campaign and by staging street protests.
"There will be more anti-Vat rallies coming from the people," was their common statement in separate interviews with Sun.Star Cagayan de Oro Sunday.
Meanwhile, Pimentel said the government should address the chronic problem of uncollected VAT, running from 40 to 50 percent, instead of raising the VAT rate on goods and services which the ordinary workers and their families could ill afford, as most companies have frozen pay hike, if not retrenched their work forces.
Almost nil
He cited the admission of Finance Undersecretary Nieves Osorio during a Senate hearing that, of the potential VAT revenue of P279 billion in fiscal year 2003, tax agencies were able to collect only P135 billion. He said the hike in VAT rate is unlikely to solve the avoidance or evasion in VAT payments.
"An additional two percentage point increase in VAT does not prevent tax evasion. But efficient collection of the present 10 percent VAT will surely cure the problem," the senator who comes from this city said.
Pimentel said the hike in the VAT rate to 12 percent is simply unacceptable and detrimental to the people considering that they already have to shoulder increases in power and water rates, bus and jeepney fares, light rail transit fees, expressway toll fees, tuition and other school fees and various types of government service and license fees.
"Public support for the VAT increase is almost nil while resistance to it continues to build up. I think our national leaders should face up to this reality and not let the public wrath over this tax increase reach its breaking point," he said.
Pimentel said the signs of a people's uprising over VAT are already there, referring to the incessant protest rallies by various groups being held on Senate grounds and other places.
Daydreaming
The senator said the public interest was uppermost in the mind of the Senate Minority bloc when it decided to block the 20 percent increase in VAT and to push instead for the scrapping of VAT exemptions, specially of big, profitable business enterprises.
He maintained that the VAT increase is regressive and unfair to the poor and runs counter to the constitutional mandate that taxes should be progressive and equitable.
Pimentel branded as unwise and uncalled for Arroyo's proclamation for a special session of Congress on March 30-April 1to tackle and pass the VAT bill.
"Why rush approval of a bill that would inflict additional suffering on the Filipino people, about half of whom are living below poverty line? The special session creates the impression that our government is insensitive to the desperate condition of our people," he said.
He said Malacañang is daydreaming if it thinks the Senate can approve the VAT bill in three days. He said it would probably take weeks of floor debates before the senators can vote on the measure.
(April 4, 2005 issue)
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