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Northern Luzon groups hit solons’ pro-VAT votes

Senators urged to junk VAT bill

BAGUIO CITY (Jan. 28) – Cause–oriented groups in the Cordillera and Ilocos Regions condemned their representatives in the lower house who voted for House Bill (HB) 3555 that will increase the value added tax of goods and services from 10 percent to 12 percent. These groups claim that the Value Added Tax (VAT) bill is anti-people and that their representatives turned their back on their constituents who will shoulder the tax burden due to the price increase of basic goods and services that will whip the poor sectors.

The House of Representatives on Thursday passed HB 3555 despite allegations by opposition and party-list representatives that Malacanang twisted the arms of the administration coalition members.

According to a staff in the lower house interviewed by NORDIS, the Cordillera congressmen who voted for the VAT bill are the following: Rep. Samuel Dangwa (Benguet), Rep. Mauricio Domogan (Baguio City), Rep. Victor Dominguez (Mountain Province), Rep. Solomon Chungalao (Ifugao), Rep. Lawrence Wacnang (Kalinga), Rep. Elias Bulut (Apayao), and, Rep. Luis Bersamin (Abra).

The Ilocos congressmen who voted for the VAT bill are: Rep. Salacnib Baterina (1st District); Rep. Eric Singson (2nd District, Ilocos Sur); Rep. Roque Ablan (2nd District, Ilocos Norte); Rep. Manuel Ortega (1st District, La Union); Rep. Tomas Dumpit (2nd District, La Union). Singson, who earlier authored the approved tax measure increasing the so called “sin” taxes, is the main author of the VAT bill.

There was an unexpected turn of events when Rep. Imee Marcos Manotoc of the 1st District of Ilocos Norte voted against the VAT bill and instead joined the Representatives who opposed the bill, according to the NORDIS insider from the House.

At least twenty-two anti-VAT congressmen walked out before the voting when congressmen from the majority maneuvered the motion of the minority. During the early part of the deliberation, Bayan Muna Rep. Teddy Casino raised a motion to refer the bill to a Committee for violations of committee rules before its presentation to the floor for third reading. The voting proceeded with more than 100 congressmen in favor of HB 3555 and 11 not in favor. More than 90 congressmen were absent during the voting.

Anti-people bill

Different groups branded HB 3555 as an anti-people bill as it imposed increased tax measures, from 10 percent to 12 percent, on basic foods affordable to the poorest of the poor, which included bread, sardines, noodles, pork, among others. Before the bill’s approval, administration congressmen claimed that these goods are not going to be affected and in fact assured anti-VAT advocates that these shall be exempted from the coverage of the bill. The approved house bill, however, included these goods.

Chie Galvez, Secretary-General of the Tongtongan ti Umili/Cordillera Peoples Alliance of Baguio City, condemned the VAT as a measure that taxed the poor. She claimed that what is needed at the moment is efficient tax collection and not the VAT percentage increase.

Millions of pesos paid by taxpayers are lost annually due to graft and corruption within the government revenue collecting agencies, anti-graft groups claimed.

Ignacio Pangket, newly elected chair of the Organisasyon dagiti Nakurapay nga Umili ti Siyudad (ORNUS), said that their group expected the railroaded passage of the controversial VAT bill. He adds that members of Pres. Gloria Macapagal-Arroyo’s political party accounts for the majority of the House of Representatives.

Romy Sanchez, secretary-general of the Bagong Alyansang Makabayan (BAYAN) of Ilocos Region, explained that these so-called representatives of the people failed to consider the situation of the masses who now doubly suffer from the effect of price and oil increases. They turned their backs on the suffering people and instead submitted themselves to the whims of the anti-people regime of GMA, he added.

An earlier survey made by Ibon Foundation, an independent research group, backed up the people’s position against the VAT. The research conducted last December 2004 showed that 84 percent and 88 percent from the respondents in the Ilocos and Cordillera Regions, respectively, are against the VAT.

Senate watched

These groups urged the people to support peoples’ movements against the VAT bill counterpart in the Senate.

“We urge the members of the Senate to junk the VAT increase as it is grossly anti-people,” appealed Galvez to the public for the support against the VAT. The VAT is an indirect taxation imposed on end consumers. Earlier GMA gave way for the non-imposition of franchise tax to communication companies, which are reported to be the most profiteering industry at present.

As of press time, the opposition claimed that the VAT would undergo rough sailing in the Senate. Some administration senators made public their anti-VAT positions.

The version of the Senate on the VAT bill needs to be passed and afterwards reconciled with the house version before it will be given to the president for approval.

As Senate Pres. Franklin Drilon’s Liberal Party favors the VAT bill, cause–oriented groups are preparing for massive rallies when the Senate deliberates the bill. They claimed that only the strengthened anti-VAT position of the people would ensure the junking of the VAT measure. # Arthur L. Allad-iw for NORDIS

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