"For every peso that every Filipino will be forced to shell out because of EVAT, government should be able to prove that each peso will be spent wisely and benefit all taxpayers in the future," Roxas said.
Roxas explained that during the Senate deliberations on the EVAT law, the government claimed that EVAT is needed to plug the budget deficit. He reiterated that the 20 percent allocation for other items should prioritize the much-needed reforms in improving health and education.
"The government cannot adopt a business-as-usual attitude," Roxas said. "There should be an efficient process of collecting taxes and wise spending of revenues collected to ensure effective delivery of public services," he added.
Roxas earlier called on the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BoC) to beef up its collection efforts and apply the law equally to all taxpayers.
"EVAT has a down-spiraling effect on the consumers’ purchasing power and raises the cost of living and doing business in the Philippines," Roxas explained.
The Supreme Court ruled as constitutional and lifted the temporary restraining order of the EVAT law last week paving the way for its full implementation on Nov. 1.
Roxas and the members of the Senate committees on economic affairs and on trade and commerce, which he chairs, will convene today to flesh out details on how to cushion the impact of eVAT on businesses and to the consumers.
Apart from government representatives, the committee has also invited industry leaders of various sectors such as food, electricity, gasoline and water to shed light on the effect of eVAT on their business as well as representatives from consumer groups, supermarket retailers, market vendors associations.
"The Senate will attempt to find ways on how to cushion the impact of eVAT by way of consultative meetings," Roxas pointed out. "While the government is claiming that basic commodities are spared from the new tax law, we should not ignore that before goods reach the palengke they will pass through businesses that are eVATable," he added.
Early in September, the House of Representative and the Senate through Roxas and Rep. Joey Salceda, filed a joint resolution deferring the implementation of Republic Act 9337 or the VAT law on petroleum products and electricity on the grounds that "global oil prices have risen to new record highs" and "peso weakness" have caused domestic pump prices to swell dramatically, putting severe pressure on the cost structure of Philippineindustries.
These factors inevitably resulted in inflation surging to 8.4 percent. For Roxas, the relentless weight of swelling cost of living would dampen not only the domestic market but investor confidence as well.
"How can we convince local and foreign investor to put in capital when cost of doing business in the Philippines has risen? Roxas argued. (MC)
Labor groups
are not joining
today’s rallies
The labor sector said yesterday that it is not joining today’s rallies of the transport groups but they are supporting their opposition to the implementation of the 10 percent EVAT on diesel and other petroleum products scheduled to take effect on Nov. 1.
The labor sector, led by Florante G. Reyes of the Integrated Labor Organization of the Philippines (ILOP), said the 10 percent EVAT on diesel and other petroleum products will make it difficult for jeepney and bus drivers and operators to operate viably without raising their fares.
But if fares will be increased anew, Reyes said the situation will become harder for averagewage earners and their famlies as the cost of basic commodities and services will surely go up.
He said that as pointed out earlier by the Trade Union Congress of the Philippines (TUCP), about one third of the family budget is allocated for transportation expenses.
‘’The cost of diesel, which is already high, will go up some more the moment the 10 percent EVAT is implemented,’’ Reyes said.
The cost of diesel is now P31.40 per liter. The transport sector is apprehensive that if the 10 percent EVAT is implemented, diesel would cost P33.85 a liter, while kerosene cost will rise from P32.60 to about P35.20 a liter.
‘’Because of its harsh effects, even the administration lawmakers have filed a resolution seeking the suspension of the imlementation of the 10 percent EVAT until after the oil crisis is over,’’ Reyes said.
Today’s rallies of the transport groups are expected to be led by Pinag-isang Samahan ng mga Tsuper at Operator Nationwide, Federation of Jeepney Operator and Driver Association of the Philippines, Alliance of Transport Operators and Drivers Association of the Philippines, Philippine Confederation of Drivers Organization-Alliance of Concerned Opeators, and Makati Jeepney Operators and Drivers Alliance.
Expected to join them are the Association of Taxi Operators Association in Metro Manila and Philippine National Taxi Operators Association. (E. T.. Suarez)
