Press Release
June 27, 2007

STUDY VAT ON TOLLWAYS FIRST - MAR

Senator Mar Roxas called on the administration to go slow on the plan to impose the VAT on tollways, and focus instead on increasing tax collections through improved tax administration.

Let us not have a knee-jerk reaction to revenue shortfalls that hits the consumers and commuters in the gut, he said, citing possible effects of imposing EVAT on toll fees on transport costs, commuter fares and prices of food and basic commodities.

It is better to plug the holes in revenue collections first than think of filling up a leaking pot.

The Department of Finances plan to begin imposing the VAT on tollways comes at a time when people are already pained by the VAT on other goods and services, he said.

The tax shortfalls call for improved tax administration through implementation of the long-overdue Lateral Attrition Act and more consistency and political will in running after tax cheats and evaders.

He cited initial projections by the Finance department indicating a P1-billion increase in additional revenues brought about by a tollway VAT.

From here, we could see that this would be a very limited solution to address the budget deficit, which has already reached P42 billion from January to May alone, he said.

All taxes collected through the EVAT should yield concrete and visible benefits to Filipinos, such as more classrooms and hospitals, teachers and health care workers. This is in keeping with the Liberal Partys seven-point agenda, which includes the earmarking of the EVAT exclusively for health and education.

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