Wednesday, May 28, 2008 Gov't to return P4B VAT proceeds to public
SAN FERNANDO CITY, La Union -- Press Secretary Ignacio Bunye on Tuesday announced that an initial P4 billion of the expected P18 billion value-added tax (VAT) proceeds from oil for this year would be returned to the public in a form of social programs like loans and scholarship grants.
"We plan to give it back to them (public)," Bunye said in an interview after the joint National Economic Development Authority (Neda)-National Anti-Poverty Commission Cabinet meeting at the Capitol building here.
He said of the P18 billion, at least P4 billion would initially be tapped for the following: P2 billion for the conditional cash transfer fund program to assist the poor under the Department of Social Welfare and Development (DSWD); P1 billion for scholarship and student loans; and P1 billion for fund assistance for the conversion of public utility vehicle engines to liquefied petroleum gas, and compressed natural gas enabled engines.
Bunye said forthcoming Cabinet meetings would discuss where the rest of the P18 billion projected VAT proceeds would be used.
Budget Secretary Rolando Andaya Jr. said proposals to remove the VAT taxes on oil and electricity at present are "good to hear but we also have to look at the long run."
Meanwhile, Energy Secretary Angelo Reyes said President Gloria Macapagal-Arroyo ordered the reactivation of the Presidential Task Force on Contingency in light of the increasing prices of oil in the world and its impact on the country.
Reyes, who was at the Neda-Cabinet meeting, said the task force would be chaired by Executive Secretary Eduardo Ermita with him as the vice chairman and chief operating officer.
"There was such energy contingency task force as early as 2002 to deal with the then looming crisis in oil supply. Right now, the problem has assumed a new nature -- the prices," Reyes said.
He said the task force would update its previous contingency plans and come up with a new one within 15 days and ensure its implementation. He said the contingency plans would include short term, medium term and long term plans.
"This is to prepare the plan and see to it that the concerns of the public because of this energy situation would be addressed particularly the poorest of the poor. So we will have plans and programs to address the concerns of the vulnerable sectors of society, the industries and the community at large," he said. (JMR/Sunnex)
