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Monday, November 14, 2005
Palace credits expanded VAT for rollback in fuel prices
MANILA -- Press Secretary Ignacio Bunye said Sunday the recent rollback in prices of petroleum products is due to the implementation of the expanded value-added tax (RVAT).
Bunye said since the expanded VAT took effect last November 1, the peso started to appreciate, which has helped in the purchase of oil and other imported products.
"We pay in dollars. When our peso strengthens against dollars, it will be a big reduction in our import bills. That's the direct benefit from the implementation," he said.
He said prior to the implementation of the expanded or reformed VAT, many sectors opposed it but the administration stuck to its decision to have the bill passed and implemented. The people, he said, are now reaping its rewards.
He added that with expanded VAT, the country has been able to strengthen the confidence of investors and the international financial community.
Bunye assured that while the rollback has been limited to the diesel and gasoline, the government is drawing up measures to ease the effect of the rising price of other products, including the liquid petroleum gas. He said the government is likely to announce the measures or at least give an update about the matter within the week.
President Gloria Macapagal-Arroyo renewed Sunday her call for the end of bickering.
"Now is the right time to unite and close ranks as the gains in the economy push up confidence abroad and across every nook and corner of the nation. I call on our leaders, national and local, friend and foe alike, to drop the bickering and distractions--and heave as one to lift up the Philippines," Arroyo said. (JMR/Sunnex)
(November 14, 2005 issue)
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