ROXAS: OIL PRICES STILL A BIG BURDEN; ZERO VAT NEEDED

Senator Mar Roxas, Liberal President, said the suspension of the value-added tax (VAT) on oil products would give consumers the needed relief from high prices, which have dropped in the past month but remain a big burden.

"Hindi makaturangan na ang taong bayan ang nagsasakripisyo sa panahon ngayon. Hindi pwede na ang pag-asa lang ng gobyerno sa pag-kolekta ng tamang buwis ay nakasalalay sa mataas na presyo ng langis," Roxas said.

Although Dubai crude has dropped from $140/barrel levels in June to $116 as of August 13, this is still much higher than the $70/barrel price last year, and way below the $30/barrel level when the expanded VAT Law was still in Congress in 2004. As of August 14, diesel costs P55.94/liter, of which P5.99 is VAT; unleaded gasoline costs P56.96/L, of which P6.10 is VAT; and an 11-kilogram tank of LPG costs P628.12, of which P67.30 is VAT.

"Ang ating dasal ay sana'y hindi na tayo makaranas pa ng mga dagdag na pagtaas ng presyo ng langis. Pero kahit hindi tumaas ang presyo ng langis sa pandaigdigang merkado, parusa pa rin ang VAT sa ating mamamayan at dapat na itong tanggalin," he said.

Roxas called once more on the Department of Energy to use its powers to require oil companies to open their books and ensure that the right prices are being charged.

"Maganda na pababa nang kaunti ang mga pump prices. Pero dapat ay siguraduhin ng gobyerno na hindi tayo pinagsasamantalahan ng mga higanteng kumpanya ng langis," he said.

Roxas has filed Senate Bill No. 1962, to suspend the VAT on oil products for six months. Although a fiscal conservative, Roxas is pushing the suspension of the VAT on oil as a temporary relief for consumers over-burdened by the spate of increases in prices of basic commodities and oil products.

The Ilonggo senator has continued to gain grass roots support for his campaign for zero VAT on oil. This Monday, he will be meeting with members and leaders of Pinagkaisang Samahan ng mga Tsuper at Operators Nationwide (PISTON).

"Itong mga tsuper mismo nagsasabi na luging-lugi sila gawa ng VAT, bukod pa sa mataas na presyo ng langis. Hindi ang mayayaman ang nagrereklamo. Bakit mas mahalaga sa gobyerno ang pahirapan ang taumbayan kesa sa ibsan ang kanilang kahirapan?" he asked.