Friday, September 02, 2005
Trade dep't: VAT has minimal effect on prices of goods
TRADE and Industry Secretary Peter Favila said it should be made clear that the reformed Value-Added Tax (VAT) Law will have minimal effect on prices of consumer goods that are currently subject to VAT.
"We will ensure that basic commodities reflect reasonable prices, and our monitoring teams will intensify enforcement of standards against unscrupulous business practices," he said.
Favila, who was joined by Finance secretary Margarito Teves during the launching of the 1st leg RVAT Roadshow in Davao on Monday held at the grand ballroom, Davao City Trade Convention center said DTI which has been working with the private sector and labor groups, has already put in place systems to guard against profiteering.
On the other hand, Agriculture Asst. Sec. Doy Salacup during the RVAT forum said it would track sudden spikes in the prices of basic unprocessed foods and food production inputs such as fertilizers and pesticides, since these items continue to be VAT-exempt.
Meanwhile, Energy Undersecretary Mel Ocampo, joining the RVAT Law Roadshow stressed that a number of mitigating measures to soften the impact of the VAT implementation on petroleum and power were incorporated into the RVAT Law to minimize the burden on the general public.
"These include eliminating the franchise tax on power distribution utilities, removing the excise tax on diesel, kerosene and bunker fuel oil, and applying zero-rating on the sale of power or fuel generated through renewable sources of energy, such as geothermal, hydro, and solar energy which account for about 57 percent of our total energy supply," Ocampo said.
The RVAT Law whole day forum was an overwhelming success with almost 700 participants coming from various sectors like: the civic groups, professionals, business, academe, government and non-government organizations, Philippine Institute of Certified Public Accountants (Picpa), Davao City Chamber of Commerce and Industry, Davao-Filipino Chinese Chamber of Commerce and industry, professionals, and lawyers including 42 tri-media practitioners who attended the press conference after the conduct of the VAT clinic.
For Bisaya stories from Davao. Click here. (September 2, 2005 issue)
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