ROXAS TO HOUSE: START DELIBERATIONS ON ZERO VAT ON OIL, POWER TO DOE: 'DEREGULATED' DOES NOT MEAN 'POWERLESS'

Senator Mar Roxas urged the House of Representatives to take its cue from the administration and start deliberations on proposals to suspend or remove the value-added tax (VAT) on oil products and on energy.

"Our economy is slowing down because everyday, the disposable income of every consumer continues to shrink due to high oil, food, and energy costs. They are crying out for immediate relief which can only take place if we amend the VAT law," he said.

As a parallel move to the administration's decision to study the implications of a reduction or elimination of the 12% VAT on oil and energy, the appropriate House committees can also hold public hearings on amendments to the VAT law.

"The administration is now looking at the implications of either reducing or scrapping the VAT on oil and on energy. That's a big leap from its original stance for an automatic rejection of any proposal to touch the VAT law. Ultimately, they have to heed the clamor of the people for the suspension of the VAT on oil as a way to keep the political and economic environment stable," he said.

"I call on the House to bring the matter to the table and start hearing all positions, especially that of our consumers," he added.

He noted that while the Senate has already started deliberations on bills seeking to suspend or remove VAT on oil and energy, it could not move forward until the House approves its own tax measures.

The Liberal Party President also chided the Department of Energy (DOE) for claiming "helplessness" where in fact the Oil Deregulation Law gives it teeth against abuses in the pricing of oil products.

"DOE can do beyond more than just to check pump prices and 'ask' oil companies to justify their prices. It can summon and open their books, check oil inventories, examine their expenses, among other acts that the Oil Deregulation Law empowers it to do," he said.

"'Deregulated' does not mean that government is barred from exercising political will. It does not mean that the government is powerless, helpless, or toothless," he stressed.

"Of course an antitrust law would help, and we in the Senate are working on that. But even now, the government should use its powers to their full extent rather than just whine about being 'powerless,'" he added.