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Wednesday, February 02, 2005
Senate wants BOC, BIR to stop leakages in VAT collection
* Political group proposes people's coalition v. VAT hike
SENATOR Ralph Recto Monday asked the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) to submit an action plan on how to plug leakages in the collection of Value-Added Tax (VAT).
Recto said he would wait for their action plan before preparing a committee report on the expanded VAT bill.
"No VAT plug strategy, no VAT bill," Recto said.
Recto said it is not enough for the government to merely think of increasing the VAT rates but it should also devise a scheme on how to mop up uncollected VAT.
"If there should be a companion measure to any law adjusting the rate of VAT, then there should be a plan on how to stop VAT evasion and leaks," Recto said.
The committee would continue conducting public hearings wherein several groups from the government and private sector are invited to present their views on the VAT issue.
Recto said the committee would have more exhaustive and open debates for at least a month and another month for the floor debates.
The senator vowed to consider all suggestions from different sectors in order to come up with better version of the bill.
Meanwhile, some Filipino economists and industrialists have urged the senators to pass the VAT bill and also repeal exemptions on certain transactions.
The consensus was for a multi-tiered VAT system wherein socially sensitive goods and services would be subjected to lower VAT rates.
Both Felipe Medalla, former director general of the National Economic and Development Authority (Neda) and industrialist Raul Concepcion, asked senators to support the VAT rate hike and the VAT exemptions to raise the much-needed revenues, without compromising the economy's capacity for growth.
"We accept that public revenue enhancement is imperative over the short and medium term even as we continue to call for downsizing and greater efficiency in government operations as the critical objective over the long-term to support the wealth-creating activities of the private sector," Concepcion said.
Meanwhile, the Bangon Pilipinas National Renewal Movement of televangelist Bro. Eddie Villanueva called for the formation of a national coalition against the VAT increase.
The group described the plan to increase VAT rates as "immoral, oppressive and a legitimate target of public protests."
"We call on the minority bloc, the party list representatives, cause-oriented groups, professionals and small and medium scale enterprises, and especially the organizations of the poor to unite in defeating it," said Villanueva.
"Together, let us form a People's Coalition and avail of all legal and peaceful means to win our cause. The people today demand our united action against the latest depraved proposal from Malacañang," Villanueva added.
Villanueva said "a hopelessly corrupt and inefficient government has no right to impose any tax increase on the people."
"How can the people be made to accept an intolerable new burden when it is as clear as the sky that the government has willingly given tax exemptions of P299 billion, with P195.52-billion of these involving VAT incentives?" he asked. (JPM/PR)
(February 2, 2005 issue)
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