The militant Kilusang Magbubukid ng Pilipinas (KMP) decried the passing of the Value Added Tax (VAT)bill in Congress saying that it would inadvertently affect not only the price of middle and upper class products but most especially our basic necessities. 

According to Ka Willy Marbella, spokeperson of the group, “even rice which is the staple food of our people will definitely be affected by this tax measure. The Natioonal Food Authority (NFA) is saying that the price will increase because of the 5%-10% increase in the price of palay (unhusked rice) and the 5% increase on its importation price,”

“But in essence they are again passing the blame on farmers who have worked and fought for the palay price increase due to their worsening poverty. It also does not mean that when palay price increases the price of rice will also increase. The current buying price of palay in the countrysides is P7-P9 at the maximum, while rice is sold at P18 at the minimum. What farmers want is to at least get part of the profit that is concentrated on the traders of rice. Their aim is to lessen the profit of the traders and improve their living, without further burdening the consumers,” added the peasanty leader.

“But with the VAT scheme, the traders can use this as a pretext to increase the price of rice, saying that because there are many processes that the rice goes through before it gets to the market, they can therefore jack up its price. They can also pass the blame to farmers by demanding for an increase in the price of palay,” expounded Marbella.

The supposed exemptions; that the VAT proponents did was not even included in the railroaded bill, how can we expect that the most sought after food product in our country be spared from this tax, when a huge amount of money can be gleaned from it? It is our position that the VAT should be junked as well as the other laws further pushing us into poverty,” ended the peasant leader. # # 
 

KMP - 28 January 2005