Press Release
October 1, 2008

ROXAS SLAMS OIL TARIFF HIKE; CALLS ANEW FOR ZERO VAT ON OIL

Liberal President Sen. Mar Roxas on Wednesday condemned the re-imposition of the oil tariff starting today as he reiterated his call for the removal of the 12% value-added tax (VAT) on petroleum products.

"Imbes na siguruhin ng Malacanang na maayos ang programa nito bilang pagtugon sa krisis pang-pinansiyal sa Amerika, naisip pa nito na dagdagan ng pahirap ang taumbayan sa muling pagbabalik ng buwis sa langis," Roxas said.

"Sa panahon na ito, ang dapat siguro ay maiwan ang pera ng taumbayan sa kanilang bulsa kesa dagdagan pa ng pamahalaan ang buwis na binabayaran nila," he added.

The Ilonggo senator said Congress has to act fast and remove the 12 percent VAT on oil and stop Malacanang from adding more burden on the people.

"Pababa na nga ang presyo ng langis ay mas pinili pa ng gobyerno maging pabigat sila sa taumbayan. Kung baga sa boksing, nakatumba pa nga ang taumbayan ay nagpahabol pa ng isang suntok ang gobyerno," he said.

Roxas said hikes in the prices of petroleum and other crude products in the international oil market could be expected in the next few days, due to recent developments in relation to the US financial slump.

Oil prices have already risen to above $101 a barrel in Asia on Wednesday on expectations that US lawmakers will pass a revised bank bailout plan that was rejected by the US House of Representatives earlier this week.

"Nakikita nating gagalaw muli ang halaga ng dolyar, at kasunod nito ang presyo ng langis, dahil sa nangyayaring financial crisis ngayon sa Amerika. Pero ang mas mahalaga rito: hindi na natin nakikitang babalik ang panahon na mababa sa $100 ang presyo ng langis," he said.

"Ito, simple lang. I-suspend lang natin ang pagpataw ng VAT sa produktong petrolyo, kaginhawaan agad ito, at sa ganoong paraan, makakatulong tayo sa ating mga kababayan," he said.

The Ilonggo senator insisted the VAT suspension would provide much-needed relief for Filipinos who are still reeling from record-high prices in the international and domestic oil markets in the past few months.

He stressed that oil is an important input to production, and any hike in its price would also increase the prices of food and other basic goods.

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