Wednesday, July 30, 2008 Group: No to Arroyo's expanded VAT stance
CITY OF SAN FERNANDO -- Some sectors here have expressed their disagreement with President Gloria Macapagal-Arroyo's defense against the scrapping of the seemingly widely unpopular expanded value-added tax (VAT).
According to Roman Polintan, chairman of the Bagong Alyansang Makabayan-Gitnang Luzon (Bayan-GL), said the President's defense on expanded VAT is without "reasonable concern" for ordinary Filipinos.
Businessman Rene Romero, president of the Pampanga Chamber of Commerce and Industry (PamCham), has a similar opinion on expanded VAT.
"Her justification of VAT as a means of poverty alleviation is ridiculous since the poor pays VAT when they buy food or pay their electric bills," Romero said.
He furthered that there is nothing new in the President's State of the Nationa Address (Sona) and rather presented a very "different perspective of the real state of the nation."
Romero said instead of defending VAT, the President should have presented basic food subsidies and long-term solutions to poverty alleviation.
"The only good news in the Sona is the reduction of text rates to 50 cents," Romero added.
The President, during her Sona last Monday, said the 12-percent expanded VAT has a very crucial role to play in the country's survival amidst the global economic crisis.
She said scrapping VAT on oil and power would only benefit the rich that consume 84 percent of fuel and 90 percent of power and hurt the poor who would be deprived of P80 billion in subsidies.
She added that scrapping VAT would lessen business confidence, raise interest rates, bring down the value of the peso, and increase the prices of commodities.
Arroyo said expanded VAT has its benefits like helping the country move through the hard business crisis.
"Because tough choices were made, the global crisis did not catch us helpless and unprepared. Through foresight, grit and political will, we built a shield around our country that has slowed down and somewhat softened the worst effects of the global crisis," she added. (IOF)
