Press Release
July 4, 2007

MAR: Money from EVAT should build better
minds and bodies for Filipino youngsters

Senator Mar Roxas said proceeds from the Expanded Value Added Tax (EVAT) must be a tool for building better bodies and minds among young Filipinos, fight debilitating disease and give poor kids a strong head start to carry on through high school and college.

"Growing the economy without leveling the playing field of social advancement is money down the drain in the long run," Senator Roxas said.

Roxas, author of Senate Bill No. 102 which seeks the creation of a "People's Fund," said the EVAT should finance enlivened classrooms, sturdy desks, good books and committed teachers as much as more health workers, more immunizations and clean water for youngsters, "all in an integrated health and education package funded by our people's heroic sacrifices."

The senator also noted that the shortfalls in revenue collections of the Bureau of Internal Revenue and Bureau of Customs combined with rampant corruption weaken public sector investments in health and education.

"Government must get its act together, focus on graft leaks that stand in the way of converting economic gains to health and education, and make new taxes a catalyst of knowledge and the people's energy to prevail against poverty," he stressed.

Roxas said he is watching prices in the Palengke as closely as he is watching the price being paid by the people for the misplaced priorities of the nation.

"I would like to see young Filipinos strong enough in mind and body to compete; at this point we have kids in elementary school who are dropping out because of low nutrition, lack of vitamins and a debilitated will to carry on."

The senator noted that dropouts in Grades 1-3 are due to under-nutrition, meaning many children of school age are not physically strong enough to go to school everyday. Roxas said there could be no quick fixes to education problems as these warrant long-term, focused and consistent policy attention and budgetary support.

Under Roxas' proposal, 30% of all revenues from VATwhich represents the share of additional VAT revenues from the EVAT lawshould be placed in a separate account in the National Treasury, called the "People's Fund."

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