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Wednesday, February 09, 2005
Metro businessmen support VAT hike
* But they also propose a return to the old rate when the country's fiscal condition has improved
THE Metro Manila Chambers of Commerce and Industry (MMCCI), the umbrella organization of 16 local chambers in the National Capital Region (NCR), has joined other business groups in supporting the proposed two percent Value-Added Tax (VAT) increase.
But the group also said as soon as country's economic situation has stabilized, government should revert to the old VAT rate.
Angelito Colona, MMCCI chairman and vice president for NCR of the Philippine Chamber of Commerce and Industry (PCCI), expressed his group's support to government's move to accelerate its revenue drive and address the country's fiscal problem.
"The MMCCI understands that additional taxes have to be imposed so that we can more effectively address our deficit problem. The effects of the VAT increase may have short-term implications on business and consumers but its long-term benefits are more crucial and important for the interest of the country," Colona said.
Colona however said unless government exercises strong political will in its efforts to curb corruption among its ranks in the bureaucracy and the judiciary, any revenue drive aimed at benefiting the economy will be useless.
"While we agree on the need to impose the two percent VAT hike and appreciate that the government has instituted other policies aimed at improving our fiscal situation, the business sector is apprehensive that perceived corruption in practically all levels of government, the judiciary included, will continue to remain as a problem hampering our economic stability," Colona added.
As the MMCCI supports the VAT increase bill, it also favors a time cap in the implementation of the same. As soon as the deficit stabilizes, a return to the old rate should follow. (PR)
(February 9, 2005 issue)
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