ROXAS TO GMA: "DO A HILLARY"
OPEN DISCUSSION ON REMOVAL OF VAT ON OIL, OTHER PRODUCTS

Senator Mar Roxas advised President Gloria Macapagal Arroyo to consider opening the doors to a national debate on the fate of the 12% value-added tax (VAT) on oil and oil products.

Roxas, chair of the Senate trade and commerce committee, pointed to the ongoing debate in the United States sparked by Democratic presidential candidate Hillary Clinton's proposal to suspend the $5 gas tax during the summer holiday

"She should 'do a Hillary' instead of putting the brakes on every single proposal to reduce or remove VAT on certain products. Our people have long been entitled to this debate because this it's their money that's involved," Roxas said.

"It would be refreshing to hear the President take the people's side on this issue," he added.

The President of the Liberal Party noted that the 12% VAT on oil was imposed at a time when world prices were still at $30 a barrel. Today, the price of crude oil has breached the $100-per-barrel mark.

He lamented that while the Senate ways and means committee led by Senator Chiz Escudero has held hearings on his proposal for a 6-month suspension in the collection of 12% VAT on oil, the Lower House has yet to hold a single hearing.

"The House bills have hit an immovable force which is no less than the Office of the President," Roxas said.

Roxas noted that Clinton and Republican presidential candidate John McCain agree on the need for a gas tax holiday to provide $5 relief to consumers during the summer months.

"Removing the 12% VAT on oil will likewise reduce the pump price of gasoline by five pesos and that of an LPG tank by at least sixty pesos. This will provide temporary relief to all sectors of society as they will now be able to purchase more food and other needs, which the government will still be able to collect EVAT from anyhow. ," Roxas explained.

The senator said that the administration's decision to reject any adjustment in EVAT on oil and energy dooms the people to unstoppable price increases.

"By temporarily eliminating or even lowering the VAT on oil, the government shall put more money in the pockets of people so that they could in turn have more money to spend on other family needs. This is a financial lifeline that is under government's direct control. I find the adamant refusal of the executive branch for an open discussion on the 12% VAT on oil extremely disturbing," Roxas said.