Monday, July 07, 2008
Saludo snubs appeals to scrap VAT (10:30 a.m.)
SECRETARY to the Cabinet Ricardo Saludo rejected renewed calls for the scrapping of the value added tax (VAT) on oil products, which would end up reducing the government's revenues, increase the budget deficit and hurt investor confidence on the country.
Saludo said the call of Senator Manuel Roxas II is contrary to his recommendation for the government to sustain fiscal discipline amid concerns for the weakening peso and the increased inflation.
"How can one show fiscal discipline and, at the same time, scrap a major source of revenues which has kept the deficit down and boosted business confidence? And what would Senator Roxas' investment banking friends say to his call for VAT lifting and no interest rate increases?" he said.
Saludo was referring to opposition to the Bangko Sentral proposal to raise interest rates to fight inflation and shore up the peso.
He said Roxas must clear his statements and take a firm stand if he is for maintaining "fiscal discipline amid rising expenditures for subsidies and now disaster relief" or for the lifting of the VAT and rejecting of interest rate hikes. (JMR/Sunnex) |
