Monday, September 05, 2005
Trade office assures no undue price hike of goods
By Jenny Molbog-Mendoza
WITH the expected implementation of the Reformed Value-Added Tax (R-Vat) or Republic Act 9337 within the next few weeks, the Department of Trade and Industry (DTI) assures consumers that there would be no unwarranted increases.
The R-VAT is an indispensable component of the government's fiscal consolidation program designed to expand the tax base, generate substantial incremental revenues, help reduce the fiscal deficit, and ensure debt sustainability in the medium term.
The R-VAT removes the VAT-exemption of several formerly non-VAT-able sector of the economy. Thus, the burden of taxation is now shared more equitably.
Among the previously exempt transactions that are now subject to VAT are: medical services such as dental and veterinary services rendered by professionals; legal services; non-food agricultural products; marine and forest products; cotton and cotton seeds; petroleum products; passenger cargo vessels of more than 5,000 tons; work of art, literary works, and musical compositions; generation, transmission, and distribution of electricity including that of electric cooperatives; sale of residential lots valued at more than P1.5 million; sale of residential house and lot/dwellings valued at more than P2.5 million; and lease of residential unit with a monthly rental of more than P10,000.
DTI Undersecretary Zenaida Maglaya said last week that they are adopting various mitigating measures in order to ensure that there would be no unreasonable hikes in the prices of basic and prime commodities.
These measures include the strengthening of price monitoring and enforcement and dialogue/consultation with concerned industries.
"With regards to monitoring and enforcement, we closely coordinate with market and supermarket vendors' associations and as well as with labor unions. By doing these things, namo-monitor natin nang maigi na walang pang-aabuso o pagsasamantalang nangyayari," she said.
Maglaya likewise announced that in one of their consultations with the flour industry stakeholders, it was discussed that there would be no upward movement in the flour price within the next three months.
Should profiteering activities would happen, the DTI vows to address it immediately.
For Bisaya stories from Davao. Click here. (September 5, 2005 issue)
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