Roxas
warned against any sense of complacency in the situation, as
the price of oil is not seen to decrease after recently
reaching US$111 per barrel in the world market. This has led
local fuel companies to increase pump prices by a total of
P1.50 in just three weeks, and to warn of a hike of P2 to P3
more this summer.
As a solution, Roxas said now is the time to suspend the 12
percent value-added tax (VAT) on oil and fuel products and to
exempt all minimum wage earners from paying individual income
taxes.
He noted that the government has rejected the VAT suspension,
while it had promised exempting minimum wage earners from tax
pay, but has yet to deliver on the same.
He added that this could help the already ailing purchasing
power of consumers; the executive could again consider his
proposal to suspend the VAT on oil, to lessen the pressure on
the transport and food sectors that already have inflation to
deal with.
"We need concrete actions to deal with the situation of
high oil prices, and all the government has done so far was to
lower oil tariffs," the lawmaker said.
According to Roxas, the pressure is on the administration to
act swiftly. The stability of prices of basic goods is needed
for both our economic and political stability.
The proposed suspension of VAT on oil has been filed as Senate
Bill (SB) 1962 and is now awaiting House action before the
Senate Committee on Ways and Means can put the bill out in
plenary.
