Press Release
December 21, 2007

Transcript of interview with Senator Mar Roxas on DWIZ's
'Karambola' (excerpt)

On SB 1962, seeking to suspend the VAT on oil for six months:

MAR: May immediate impact ito, because VAT on oil takes away money everyday, from every household, LPG. And then the housewife, si Misis, sa savings sa LPG - you know, in an 11-kilo tank of LPG, she saves nearly P70. She will now have P70 sa gamot, sa pagkain, at kung anuman...

Nandito ako sa EDSA-Guadalupe, itong jeep na ito, sa bawat litro ng diesel na binabayad niyan, mayroon siyang halos P5 na VAT. I-calculate lang natin. Sa isang araw, palagay natin 30 litro ang konsumo ng jeepney, sa P5, that's P150.

Q: But if we abolish VAT on this and other products, there's no more income for the government.

MAR: Ang kagandahan nito is, at least there is a discussion. Hindi naman pwede na sarado na lang, na hindi natin pinag-uusapan ito. Palagay ko, yung oil, sa lahat ng produkto, kahit sa mga itlog na dine-deliver mula sa Laguna, kasama iyan.

Q: Isn't there a part in the VAT Law where under circumstances, you can suspend it?

MAR: You have to amend it, hindi pwedeng executive action. Kailangang amyendahan ang batas.

Q: But you have to be open to abolishing VAT on items that the poor buy.

MAR: Yes, but my point is that here is one product, we don't have to discuss it, alam nating lahat, ang mamamayan mismo alam nila, ang bawat misis sa LPG alam nila kung magkano ang VAT sa bawat tanke ng LPG, kasama diyan carinderia, kasama lahat. Sa bawat mangingisda, sa pagbayad niya ng regular na gasolina para sa kanyang motor, tricycle, lahat iyon. Buong sektor na iyan, ang pinaka-basic na sektor, lahat naman tayo gumagamit ng produktong petrolyo, malaki talaga ang savings, and the money is not lost to the government, because the savings will also be spent by Juan de la Cruz.

Q: What about increasing excise tax on petroleum to increase government collections, 'di ba that's not pass-on?

MAR: No, everything is passed on.

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