|
Saturday, November 05, 2005
Editorials: Responding to RVAT’s effect
It is interesting how the Arroyo administration will respond to the fallout of the implementation of the Reformed Value Added Tax (RVAT).
While businessmen have initially been shielded from the impact of the new law by simply passing the tax burden to consumers, that won’t be for long.
Renewed calls for wage hikes and President Arroyo endorsing it to Congress may eventually prove that no sector can escape RVAT’s effects.
Employers have been able to fend off previous lobbies for legislated wage hikes because of the lack of compelling reason to emasculate the regional wage boards.
But RVAT and the minuscule wage hikes the wage boards ordered seem to be pushing public opinion to a Congress-mandated salary increase.
Meanwhile, drivers groups are starting to act up and are preparing petitions for a new round of fare increases for passenger jeepneys and buses and taxicabs.
After imposing fare increases in May, the Land Transportation Franchising and Regulatory Board (LTFRB) said that would be enough for the year.
Thus, despite the hikes in oil prices since then, LTFRB Chairperson Ma. Elena Bautista stood pat on that LTFRB decision.
But with the shooting up of the prices of petroleum products when RVAT was implemented on Nov. 1, LTFRB may have to loosen on its stance.
In the meantime, concerned government agencies are on the prowl ensuring that unscrupulous traders won’t use RVAT to jack up profits by unfairly raising prices.
These, though, may just be for starters because the ripples the RVAT created are so widespread it will take time before government could calm them.
And there is always the possibility that the ripples would lead to unrest and become waves that would splash onto the already turbulent political waters.
Demands for fare hikes
Leaders of drivers and operators groups in Cebu are angling for a P7.50 minimum fare and P1 per succeeding kilometer for jeepneys.
Actually, drivers and operators have the right to ask the fare they want because in the end it will be LTFRB’s call.
What is wrong, however, is when the previous experience wherein “mind-boggling” fare increases were initially imposed would be repeated.
The problem at that time was that passengers were not quick to the draw and were not able to immediately challenge the fare rates demanded by the drivers and operators.
The lesson should hopefully have been learned this time around.
(November 5, 2005 issue)
Write letter to the editor. Click here.
Join the Sun.Star message board. Click here. |
|
[return to top]
[home]
[network page]
|
LOCAL NEWS
BUSINESS
OPINION
SPORTS
LIFESTYLE
FEATURE
SUPERBALITA
WEEKEND
|
