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Wednesday, May 11, 2005
Nalzaro: Is Congress playing safe?
By Bobby Nalzaro
Is Congress playing the role of Pontius Pilate with its proposed compromise version of the controversial value-added tax (VAT) measure? The scheme hatched at the bicameral conference committee gives President Arroyo the authority to increase the VAT from the current 10 percent to 12 percent by January next year.
Malacañang has been proposing a 2 percent VAT increase to help solve the fiscal crisis we are experiencing. The subsequent bill filed in Congress has been the subject of protests especially by militant and progressive groups who accuse the Arroyo administration of succumbing to the dictates of international financial creditors.
And why did I bring up Pontius Pilate? Because instead of deciding whether to pass or reject the measure, legislators seem to be washing their hands of responsibility on the possible adverse effects of the law to the public. They know that the measure is unpopular and passing it could jeopardize their reelection bid in 2007.
Para nako, morag binayot ning ilang baruganan. If Congress, which is dominated by pro-administration members, wants to help government solve the fiscal crisis, then it should support the government’s agenda whatever the implications. No ifs, no buts.
With the scheme, the time and effort spent by legislators in committee hearings and floor debates would become an exercise in futility because after all they are passing the buck to the President. Instead of debating on the provisions of the bill, legislators will simply give the President authority to increase the VAT.
I agree with the observation of some lawmakers that that this compromise version is all about politics. Twelve senators and all members of the House are up for reelection in 2007. Voting for the unpopular bill is tantamount to committing political suicide.
So to play safe, legislators will ask the President to impose the increase, after all she is no longer qualified for reelection and can do whatever she wants without fearing a political backlash. Sama sila kang Ponso Pilato nga nanghunaw sa iyang kalambigitan sa kamatayon ni Hesukristo.
With the move, the President will be able to raise the VAT rate from 10 percent to 12 percent if the National Government’s fiscal deficit exceeds 1.5 percent of the gross domestic product (GDP) or if VAT collections exceed 2.8 percent of the GDP.
Well, let us see if President Arroyo has also the courage to implement the VAT increase when the proper time comes.
(bobby@sunstar.com.ph/ 0919-3181404)
(May 11, 2005 issue)
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