Thursday, February 03, 2005
Right thing to do: Raul
By Charmaine Y. Rodriguez
Sun.Star Staff Reporter
Despite appeals by progressive groups to withdraw his vote, Deputy House Speaker Raul del Mar still wants the value-added tax (VAT) increased, although he will make sure prime commodities are exempted.
Following the call of Central Visayas representatives of groups like Bayan Muna, Gabriela, Migrante and Anak ng Bayan, the Kilusing Bagbubukid ng Pilipinas (KMP) Cebu chapter yesterday appealed to del Mar to withdraw his vote.
KMP-Cebu, in a press release, said a vote against the VAT bill will be “of great service to the poor Cebuanos.”
“Supporting a blatantly anti-poor tax measure is an act short of betraying the people’s trust, in the face of an intensifying socio-economic crisis,” said KMP-Cebu Chairman Panfilo Arpay.
Like KMP and the other groups, Alvin Dizon of Akbayan said they have raised issues on the approval of the bill, like passing on the burden to consumers, the exemptions granted to multinational companies and the inefficiency of our tax collection system.
All the groups called for a more efficient tax collection system and suggested increasing the tariff on imported products to protect local industries and agriculture.
Congressman del Mar, in an interview yesterday, said improving tax collection and going after tax evaders will also be among the steps the government will pursue to raise revenues.
In response to the appeal, del Mar encouraged the groups to read the explanation for his vote.
“I wish I could do that (withdraw my vote). Then, I will be in the popular side of the issue. But I regret I can’t do that because my affirmative vote is the right thing to do,” del Mar said.
He added, “I invite them and all my brother Cebuanos to go over my explanation for my vote. After your perusal thereof and you still disagree with me, then let us take consolation in the thought that we disagree but we are one in our objective to do what is right for our country, our people and we respect each other’s position.”
Del Mar said he has always voted for what is right, not for what is popular.
However, he assured that he will work to be a member of the bicameral conference committee, which will meet on amendments to the bill.
That conference committee will meet as soon as the Senate comes up with its own version of the VAT restructuring bill, which is one of eight revenue-generating measures President Arroyo wants passed to plug the deficit.
Del Mar said he will push for VAT exemptions on prime commodities like sardines, corned beef, pan de sal, cooking oil, refined sugar, instant noodles, evaporated milk, refill coffee packs, toilet soap, detergent bars, flour, steel bars and even cement.
The VAT bill, which the House of Representatives approved, exempts businesses with a turnover of less than P550,000 per year, transactions involving basic and essential goods and services, sales of agricultural and marine food products, livestock and poultry for consumption, goods sold in public markets, carenderias and sari-sari stores and the lease of residential units with a monthly rental not exceeding P8,000.
“In all, the effect of the two percent increase on the general level of prices would be minimal,” del Mar said.
VAT, as a tax on consumption, will bear more heavily on the rich and high-income earners who spend more, del Mar said. (CYR)
(February 3, 2005 issue)
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