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AS
Malacañang continues to fend off proposals to scrap the
value-added tax (VAT) on petroleum products, private
sector and government groups are now clamoring for the
removal of the tax on all products.
Edgardo
Lacson, president of the Philippine Chamber of Commerce
and Industry (PCCI), said instead of imposing VAT, the
proposal is for the government to go back to the old
gross-sales tax system.
Lacson
said a high-ranking government official is now finishing
his technical paper on the feasibility of removing VAT
on all commodities and will be presenting this to the
PCCI once completed.
“His
thesis is that the government can earn more if we go
back to the old tax structure,” Lacson told the
BusinessMirror. He declined to name the official.
The
official’s proposal for the removal of VAT, Lacson said,
was actually echoed by some regional chambers of the
PCCI.
He said
some of their members in the provinces asked that this
be included in the debates on what would be incorporated
in PCCI’s “wish list” that will be submitted to
President Arroyo during the Philippine Business
Conference in October.
“Some
chambers are requesting for the removal of VAT for all,”
Lacson said.
Every
year the PCCI presents to the President a number of
proposals requesting for policy changes and actions on
some matters that the group deems as important for
economic growth.
Lacson
said the petitions they have gathered so far from the
regions center mostly on reforms in the country’s tax
system, with the VAT removal probably the most
controversial.
He said
the PCCI officers will collect all proposals and
arguments and determine which of them would be included
in this year’s wish list.
Personally, Lacson said the removal of VAT will give
immediate relief to the people, ”but we also have to
worry about the long term.”
“We
don’t know the impact until we get the paper,” he said.
Meanwhile, Sen. Mar Roxas II recommended yesterday that
the Arroyo administration and its Congress allies “speak
with one voice” and present to the people a detailed
proposal to replace the 12-percent VAT on oil with
softer taxes, such as an excise or specific tax, so a
thorough debate can begin when Congress resumes sessions
this month.
“The
expanded VAT may have worked before in padding our
fiscal deficit. But times and circumstances have
drastically been altered. Only fools don’t change tack
when times change,” said Roxas recalling that crude oil,
then $35 a barrel, now costs $140 and still rising.
He added
that “if ‘business-as-usual’ worked before, now it
doesn’t. Before it meant ‘fiscal reform,’ now it means
government riding piggyback on the financial burdens
faced by all consumers.” Roxas pointed out that the
public is getting confused because of the different
statements issued by President Arroyo’s economic
advisers and managers regarding the VAT on oil.
“What
we need to hear right now is a clear and well-thought
out alternative to pinning all our hopes for tomorrow on
VAT on oil.” |
