Scrap Value Added Tax On Oil And Power, Groups Urge RP Leader

DAVAO CITY, Philippines (Mindanao Examiner / July 15, 2008) – Militant groups demanding the scrapping of value added tax on oil and power held a demonstration Tuesday in the southern Philippine city of Davao.

The demonstrators, mostly from the Bagong Alyansang Makabayan, said President Gloria Arroyo’s refusal to scrap the VAT on oil and power could trigger more protests in the country.

"Arroyo's stubborn refusal to scrap the VAT on oil and power only adds fuel to the growing outrage against her regime. Her refusal to lift her VAT shows unparalleled callousness on her part.”

“Her claim that the VAT helped shield the country from the impact of the world oil and food crisis is a big, fat lie. Contrary to her claim, the VAT actually aggravated the impact of the crisis," said Bayan secretary general Renato Reyes, Jr.

The group said the issue on the VAT could spark widespread protests during Arroyo’s State of the Nation Address on July 28.

“The VAT on oil and power will be a major demand of the SONA protests. There is a growing national campaign right now to demand the removal of this unjust and oppressive tax.
Thousands are expected to march on SONA day to demand immediate economic relief through the scraping of the VAT, implementation of price controls and wage adjustments,” Reyes said.

The multisectoral campaign Kontra KulimVAT estimates that the VAT on diesel fuel is now P6.71 per liter, while that on liquefied petroleum gas (LPG) is pegged at P88.62 per 11-kilogram.
The group said with the latest increases in prices, the government will now collect P118.29 million daily from the VAT on diesel and P22.77 million on LPG.

“In Davao City, protests are also expected to escalate in the next two weeks. We will continue with our Black Friday protests. We are expecting a big turnout in the SONA rally,” said Bayan-SMR deputy secretary general Makpil Camacho.

Bayan said that Arroyo is prioritizing the interests of foreign creditors over those of her own countrymen who are reeling from poverty. (With reports from Romy Bwaga)