Press Statement

PRO-CONSUMERS’ ASSAILS THE APPROVAL OF THE VAT INCREASE!

The Metro-Baguio PRO-CONSUMERS strongly condemns the approval of a 20% increase in the Value Added Tax (VAT). This measure is an added burden to the lowly consumers who will pay the additional increase in VAT of commodities and services.

Those who voted in favor of House Bill 3555 are aggravating the already depressed situation of the Filipino masses.

We feel utter disgust at the 126 legislators who approved the VAT increase through House Bill 3555. They abandoned their sworn duty to protect their constituents from added difficulties in this time of crisis. They voted based on a long-overdue imposition of International Monetary Fund which was revived last year in the aftermath of government’s declaration that the nation was facing a fiscal crisis.

President Gloria Macapagal-Arroyo in her desperation to take the country out of the fiscal crisis had pressured the railroading of House Bill 3555. The president is finding it hard to understand a common knowledge that an increase in VAT is not needed if tax collection is improved. A higher VAT rate does not necessarily translate to higher collections since the key is still collection efficiency.

The increase in VAT is grossly anti-people and must be rejected.

Products that will be affected by the VAT hike are canned goods, processed meat, processed dairy products, coffee, sugar, soft drinks, instant noodles, clothing, footwear, medicine, pulp and paper, glass products and construction materials. Basic utilities such as water, electricity, gas, telephone services as well as railway transportation and bus line operators will also be affected. As a regressive tax, VAT will hit the poor harder than the better-off.

It is in this light that we express our commendation to the legislators/party list representatives who are opposed to the VAT increase. Although defeated in number, they rightfully deserve the support of the consumers. In vivid contrast, the pro-VAT lawmakers should be criticized.

Amid widespread poverty, we must reject any tax measure that will result to the soaring of prices of already expensive commodities and services. We call on the Metro-Baguio consumers to be one with us in denouncing the VAT increase.

OPPOSE THE VAT INCREASE,
FIGHT FOR CONSUMERS’ PROTECTION!

PRO-CONSUMERS METRO-BAGUIO (Promotion of Consumers’ Survival and Economic Rights)
Tongtongan Ti Umili-Cordillera Peoples Alliance #