Pimentel made the promise as Congress resumes regular session tomorrow, with the Senate expected to approve its own version of the expanded VAT bill.
Appearing at the weekly Kapihan sa Sulo news forum in Quezon City, Pimentel insisted that profitable companies, like those in the telecommunications industry, and IPPs should absorb the costs that would arise from the withdrawal of their VAT exemption.
He reiterated that there is no reason why oil, power and telecommunications firms should not comply with the "no pass-through" provision that he said he would insist to be included in the Senate version considering the hefty profits they have been generating especially from mobile phone operations.
"Dapat ipagbawal ang VAT na ipasa sa taumbayan. Nagawa ito sa America, pwede rin itong gawin dito sa atin," Pimentel said.
He cited the case in Alabama where an oil firm was sued for charging VAT to its consumers. "Like in the case of Exxon, a gasoline company in the US, it was protested and was sued for passing on (the VAT) to its consumers, and the case won," he said.
Pimentel claimed that he is being pressured by some quarters not to push for the inclusion of the "no pass-through" provision, but said he won’t back off.
Like opposition Sen. Juan Ponce Enrile, who was guest at last week’s Sulo forum, Pimentel said the Senate is poised to retain the current VAT rate of 10 percent and repeal the exemptions on petroleum products and services provided by IPPs.
"It is expected na pag-uusapan agad ang VAT once session resumes on Monday. The government is pushing for an increase of the VAT from 10 percent to 12 percent. Kami sa minority, ayaw namin. Huwag dagdagan ang VAT, instead tanggalin ang ilang exemption sa 10 percent VAT," Pimentel said.
The minority leader said that based on their computation, the government stands to earn more if VAT exemptions will be lifted instead of approving the House version of a 12 percent VAT.
"Based on our computation, lilikom ng mas malaki ang gobyerno at sosobra pa sa projected income of the additional two percent. Tanggalin ang ilang VAT exemptions, ‘yan ang paninindigan ng Senado," Pimentel said.
"Even administration senators are backing the lifting of the exemption particularly for gasoline, IPPs and telecoms," he added.
No fare hike move by 2 transport groups backed
Labor and consumer sectors yesterday backed the move of two transport groups not to seek a fare increase despite oil price hikes.
The labor and consumer groups supported the position of Pinag-isang Samahan ng mga Tsuper at Operator Nationwide (PISTON) and the National Land Transportaton Council (NLTC) that instead of seeking a fare increase, they will fight the oil price hikes along with labor and other organized sectors.
The labor groups, led by the Trade Union Congress of the Philippines (TUCP), claimed to be the biggest labor organization in the country with 27 affiliated labor federations, called on other sectors of society to join PISTON and NLTC in fighting the oil cartel responsible for exorbitant increases in the prices of petroleum products.
‘’We should work together and pressure Congress to repeal the Oil Industry Deregulation Act and for the national government to take over Petron Corporation,’’ the TUCP said.
The TUCP believed that government control of Petron will break up the current oil cartel and prevent the giant oil companies from dictating petroleum prices. It called on Malacañang to take a full options approach to buy back the majority stocks of Petron Corporaion.
The government, through the Philippine National Oil Company, already owns 40 percent of the share of stocks of Petron.
‘’Our two biggest problems- the uncontrollable fuel prices and skyrocketing prices of commodities and services - is largely the result of the deregulated oil industry,’’ the TUCP pointed out.
In supporting the move of PISTON and NLTC not to seek a new fare increase, the TUCP said that hikes in transpot fares at this time would only generate a ripple effect that will push living coast soaring beyond the reach of the fixed-income earners.
‘’In the end, it will be the working people and the poor who will suffer most from the fare hikes,’’ the TUCP said.
The TUCP added that transportation ranks third in the hierarchy of expenses borne by a working family. Fare hikes also result in substantal increases on food expenses that account for over 40 percent of total family expenditure, it added.
Other labor groups led by the Integrated Labor Organization of the Philippines (ILOP) expressed the hope that other transport groups will follow the example of PISTON and NLTC. (E. T. Suarez)
