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Monday, July 28, 2008
Gloria retains VAT, announces 50% cut in text rates
MANILA (2nd Update, 4:24 p.m.) -- The value-added tax (VAT) on goods, including fuel products, will remain as removing the tariff would reduce the country's chances of coping with the global crisis, President Gloria Macapagal-Arroyo said in her report to the nation today.
In the same speech, she announced a 50 percent cut in the rates of text messages following talks with telecommunications companies.
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Arroyo, in her eighth report before the joint session of Congress, said the VAT was important for the country to solve its problems. Debt was reduced and infrastructure were built from the VAT funds, she added.
Government critics have been calling for the removal of VAT to help the people cope with rising prices of fuel and other goods.
Take away the VAT and you will rip out the country's chances of coping with the crisis. Take away the VAT and the peso will decrease in value, and only the rich would benefit, she said.
On the reduction of text message charges, she said texting is a way of life and she has asked telecommunications companies to lower the cost. "It is now 50 centavos per text," she said.
Earlier in her report, Arroyo attributed "tough choices" made by her administration to the softening of the effects of the global crisis on the Philippines.
She said of the global crisis affecting food and fuel prices that "neither we nor anyone else in the world expected this day to come soon but we prepared for it."
She added that her government has the funds needed to ease the burden on Filipinos. "We have the money to care for our people and pay for food when there are shortages, for fuel," she said. Through "foresight, grit and political will," the country was able to prepare for the crisis. (Sunnex)For more Philippine news, visit Sun.Star Pampanga. (July 28, 2008 issue)
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