Gabriela Women’s Party today renewed its calls for the removal of the 12% Value Added Tax (VAT) on oil saying this would be a better way to address the woes of the public transport sector rather than implementing round after round of fare increases.
“The removal of the VAT on oil becomes all the more imperative as we cannot see world oil prices anytime soon. The effect of the weekly oil price increases is becoming unbearable for the lot of ordinary Filipinos. The fastest way that the Arroyo government can interfere and give immediate respite to the transportation sector, commuters and consumers alike would be to remove the VAT on oil.”
This was according to Gabriela Representative Liza Maza as transport groups raised the possibility of filing another petition raising the minimum fare to P10.00 from P8.00. Public transport groups said they were willing to withdraw their proposal should the government decide to remove the VAT on oil, which would lower oil prices by as much as P6.00 per liter.
“Another fare hike would be a disaster for ordinary Filipino families, especially with the coming school opening when school children would have to commute as well. This will expectedly result to an increase in the family’s daily expenses,” said Maza.
The Gabriela solon further said that removing the VAT on oil products would give women and households much relief as this would also bring down the price of an 11-kg LPG tank by at least P70-80. Moreover, reduced oil prices would have a domino-effect on the prices of basic commodities including rice, as this would reduce farm to market transport costs.
Gabriela Representatives Maza and Luz Ilagan have filed HB 3458 removing the 12% VAT on oil products and HB 3433 to repeal the RVAT. They are also supporting several measures in Congress that seek to amend the RVAT approved in 2005. Maza and Ilagan have likewise co-authored HB 1724 to repeal the Oil Deregulation Law.#