Militant transport federation Pagkakaisa ng mga Samahan ng Tsuper at Operator Nationwide (Piston) yesterday denounced the Arroyo administration’s insistence that the government cannot suspend the 12-percent expanded value added tax (eVAT) on oil and other petroleum products in view of the high oil prices as it threatened to mount a series of nationwide protest actions.
Transport group threatens to hold protests anew
01/17/2008
Manila-- Militant transport federation Pagkakaisa ng mga Samahan ng Tsuper at Operator Nationwide (Piston) yesterday denounced the Arroyo administration’s insistence that the government cannot suspend the 12-percent expanded value added tax (eVAT) on oil and other petroleum products in view of the high oil prices as it threatened to mount a series of nationwide protest actions.
According to reports, Finance Secretary Margarito Teves said the government will not consider an eVAT suspension but will further reduce the oil tariff to cushion the impact of runaway world oil prices.
Piston said reducing the oil tariff will only enlarge more the super profits of the transnational oil cartel of the Big Three in the country while drivers, consumers, ordinary motorists and the people in general will continue to suffer the brunt of high oil prices.
Piston secretary general George San Mateo accused the Arroyo regime of trying to fool the drivers and the people with regards to the steps being undertaken by the government to address the crisis.
“While President Arroyo is inviting everyone to attend the so-called energy summit to supposedly find ways to cushion the impact of high oil prices, as early as now, she has already made up her mind that suspending the 12-percent oil VAT will not be considered by the government,” San Mateo stressed.
He said if the oil VAT will be suspended, it will result in an oil price rollback of P4.62 per liter of diesel and P5.59 per liter of gasoline and at least a P62 to P72 reduction in the price of an LPG tank.
“Suspending the oil VAT and the Oil deregulation Law will definitely bring much-needed economic relief to our people,” San Mateo explained.
He said government is lying when it said it will lose P52 billion in revenues if the oil VAT is to be suspended, adding the government has been experiencing a tax leakage of about P95 billion per year.
“If the government can just plug that tax leakage, it will have more than enough revenue in the light of a temporary or outright repeal of the oil VAT,” San Mateo pointed out.
“With that kind of declaration by the government, it proves that the administration is not really open to the many resolutions that might arise in the energy summit,” he said.
“If the government will exclude the oil VAT suspension proposal, as early as now we will predict that the so-called energy summit will result in a monumental failure,” San Mateo added.
He also warned the Arroyo administration that Piston might not attend the energy summit if its agenda will not include the suspension of the oil VAT and the Oil Deregulation Law.
“What’s the point of attending an energy summit if as early as now, the government has already disregarded the proposal to suspend the oil VAT. It might be better if we launch a protest action during the opening of the energy summit to push for the scrapping or suspension of the oil VAT and the Oil Deregulation Law,” San Mateo said.
He also lashed out at Malacañang for trying to wash its hands over the issue by saying the President cannot suspend the oil VAT without congressional approval.
San Mateo said back in 2005, Mrs. Arroyo suspended the Death Penalty Law by certifying to Congress an urgent bill to repeal it.
He said because of the President’s urgent bill notice, Congress was able to repeal the Death Penalty law in less that 2 months time.
San Mateo added Piston’s national council will hold a meeting early next month to discuss the crisis of high oil prices and to firm up the organization’s plan of actions to mount a series of protests if oil prices continues to shoot up.
“We will definitely mount a series of protest actions if oil prices continue to increase and if the government continues to ignore our call to suspend or repeal the 12-percent oil VAT and the Oil Deregulation Law,” he said. Charlie V. Manalo