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Kill VAT!

Women and the general consumers in the country will face new hikes in prices with the proposal of increasing the Value Added Tax (VAT) from 10-12% through House Bill 3555. This proposed tax measure plus other revenue measures, are urgently being pushed by the national government in its attempt to increase the revenue collection to solve the economic crisis of the country. The poor women and their families in the Cordillera are still reeling from the impact of the series of price increases in 2004. Instead of resolving the impact of the crisis onthe ordinary Filipinos, resolve the issue of massive corruption in government which is taking a big chunk of the national coffers. Instead, Arroyo is banking on further taxing the poor.

Representative Liza Maza of the Gabriela Women’s Party earlier resigned from the Committee of Ways and Means when the Lower Houses made a short cut process in the deliberation of the proposed tax measure. Strongly commenting on the process, Rep. Maza pointed out that the Congress has breached the people’s basic constitutional right to due process just so it could hastily comply with Malacanang’s directives. When the Lower Houses refused to bring back the deliberation to the Committee on Ways and Means, members of Congress belonging to the Kill VAT coalition, walked out from the session on January 26, a symbolic action to protest the fast-tracking of HB 3555. Protests are now mounting at the Senate and in the streets to register people’s opposition to this impoverishing measure.

Innabuyog looks at this measure as deadlier than meningococcemia and tantamount to being hit by tsunami waves. The proposed VAT increase should be opposed and stopped if the Arroyo government is sincere enough in giving economic relief to the poor Filipinos. It is a blatant lie on the part of Malacanang to claim that this measure will not affect the poor. To put it straight, the framework of imposing a VAT increase is to generate more revenues. The VAT hike will inevitably result to an increase in the cost of production and force small and medium companies to retrench workers. It is a direct blow to the labor sector especially to the women workers and their families. It is a direct blow to the ordinary consumers who are forced to pay an additional 20% (not only 2%), of the current price that is already unbearable for ordinary women and their families.

As basic consumers and producers, let us not allow ourselves to be misled by the Arroyo government’s pronouncement that the VAT increase will not hit us. Let us inform the women and the public that the VAT increase is but a measure that will bury us in further poverty. The proposals of safety nets have no essential meaning. At this point, let us kill the proposed increase for VAT by voicing out our position in public, hold public discussions on this issue and conduct collective actions to register our protest. #

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