ROXAS: IMMEDIATE RELIEF THROUGH SUSPENSION OF OIL VAT NEEDED
SENATE WAYS AND MEANS COMMITTEE BEGINS HEARINGS TOMORROW

Senator Mar Roxas reiterated his call for the executive to consider new and meaningful solutions to alleviate the weakened purchasing power of Filipinos, particularly his proposed suspension of the value-added tax (VAT) on oil.

The Liberal Party President also said that while the government is still insistent on collecting VAT on petroleum prices despite the constricting purchasing power of the people, the Senate will do its work to provide this relief.

"We see that the economy is in danger of stalling if we do not address the weakening purchasing power of Filipino families. The Senate will today start to do its work in providing this much-needed relief," he said.

"Ang panahon ngayon ay nananawagan na isauli sa mga mamamayan ang kanilang pinaghirapang kita. Higit nilang kailangan ito ngayon para sa kanilang pang-araw-araw na buhay, kaysa ang pamahalaan," he added.

Roxas stressed that the executive's concerns on the measure's fiscal impact were misplaced, and that the government could bear the foreseen P20-billion loss much better than it could have back in 2005, when the expanded VAT law was passed and when the government was dealing with a P250-billion budget deficit.

"The executive is using worn-out glasses in looking at our extraordinary situation. But these times call for an urgent and compassionate approach, and a rethinking of old formulae that we've used in our past problems," he added.

"We're no longer in fiscal crisis mode, but the government is continuing to collect taxes from socially sensitive products such as oil to cover up shoddy collections in other areas. Ni-reject nila ang aming panukala, dahil mas madaling mangolekta ng VAT sa langis kaysa habulin ang malalaking tax evader at smuggler," he said.

Roxas earlier filed Senate Bill No. 1962, which seeks to treat oil and petroleum products as zero-rated products for a period of six months, effectively suspending the 12% VAT on these products for the said period.

Estimated savings from the measure would be P4 per liter of diesel and P65 for an 11-kilo tank of diesel, and foregone revenues due to the suspension of VAT on oil for six months would be about P20-30 billion.

"This extraordinary situation calls for belt-tightening on the part of the government. It should also serve as a wake-up call for them to finally put in place meaningful reforms in tax collection and to run after the big-time tax evaders and smugglers," he added.