Thursday, February 07, 2008 Malig: VAT, criminal act, and the rat By Jun A. Malig Cognition
FOR many think-tanks, including Ibon Foundation, removing the 12 percent value-added tax (VAT) on petroleum products is the only alternative to minimize the adverse effect of the global oil price hike to the lives of Filipinos.
They say that such a move will be the fastest solution to the people's woes and, possibly, even spur economic growth. How? Removing the VAT on oil products, Sonny Africa of Ibon research said, would stimulate economic activity through savings to consumers on their fuel bills.
"It is estimated that without the 12 percent VAT, oil pump prices would go down by P4 per liter and LPG by P60 per 11-kg cylinder."
These savings, he said, would mean more money for consumers to spend directly on their needs. He added that bulk of revenues from the VAT go towards debt servicing and not for the much-needed social services.
Even fuel intensive businesses, he said, would benefit from lower operating and production costs.
Earlier, the government said it could not remove the 12 percent VAT on petroleum products, as this would result in an annual revenue loss of P52 billion. But Ibon said the losses may be recovered through efficient revenue collection and addressing the problem of smuggling, which cost the government at least P64 billion in lost revenues every year.
Perhaps this measure deserves to be considered, especially now that even Balikbayans and Overseas Filipino Workers have been complaining about the shrinking value of the dollars they earn. A news report a few days ago also stated that several exporters have been forced to shut down while some have resorted to retrenchment just to cope with the prevailing exchange rate between the US dollars and the Philippine peso.
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Although police statistics show the decreasing incidence of crimes, the latest Social Weather Station survey on crime victimization reveals that many families and individuals have been victimized by thieves, armed robbers, and other criminals.
In its December 2007 survey, the SWS found that 8.6 percent of families were victimized by pickpockets and three percent were victimized by burglary during the past six months. Almost two percent of those who have motor vehicles fell victims to car thieves.
In Luzon, 8.7 percent of the respondents were victimized by pickpockets, 3.3 percent suffered break-ins, and 2.3 percent lost their motor vehicles to car thieves.
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Our Chinese brothers and sisters have formally celebrated the start of the Year of the Earth Rat. The Chinese New Year starts today, February 7.
Unlike in the West and westernized countries where the rat is regarded as a bottom-dwelling and disease-carrying animal, in some Eastern countries like China the rat is being revered for its quick wits. They are also being regarded as a symbol of good luck and wealth.
Some Chinese astrologers say that people born under the year of the rat would have excellent opportunities this Eastern year. I don't really believe that a person's life and future depend on the year of his or her birth. I still believe that we, most of the times, make our own destiny. But I enjoy reading Chinese astrology, especially about the traits and characters of the animals.
