Friday, July 18, 2008 Businessman opposes scrapping of 12% VAT
A LOCAL businessman voiced his support of President Arroyo’s decision not to scrap the value-added tax (VAT).
Robert Go, former governor of the Philippine Chamber of Commerce and Industry for Central Visayas, said the VAT is “something “the government needs to do.”
“During the 2004 and 2005 crisis, we were saved by the VAT,” he said. He added that if the VAT will be taken out, foreign investors would most likely leave or “shy away” from the country since there will be no more money to support the government’s infrastructure projects.
While he is merely expressing his opinion, Go said that most businessmen who are knowledgeable about economics will think the same.
The main culprit in the rising prices of goods, said Go, is the oil price increase in the world market. He said the rising price of oil is caused by foreign market forces.
“We don’t have anything to do with it,” he said.
He said the country is lucky that there are millions of overseas Filipino workers who send dollars to their families here in the country.
He said that since the oil industry has been deregulated, the presence of more, even small, players would lower oil prices.
“If there will be more small players, there will be more supply and the demand will be dampened,” he said.
Go referred to oil companies like Genergex, Flying V and Seaoil as the small players that should be supported to push down the prices of oil from the top three major oil companies. (DME)
