The militant Kilusang Magbubukid ng Pilipinas (KMP) lambasted pro-VAT solons once again for lifting the VAT exemptions of independent power producers (IPPs) and professionals. According to Danilo “Ka Daning” Ramos, secretary general of the group,”this is is indeed adding insult to injury. We are not fools to believe that by lifting the VAT exemptions on these sectors, the VAT bill would become less regressive and oppressive. On the contrary, it would only serve as another burden to us, because the VAT that these sectors would incur would inevitably be passed onto consumers,”
“What we want and need is for the VAT bill to be scrapped and not a sugar-coated and prettified version of it for the satisfaction of Malacanang, but to the detriment of the people,”added the peasant leader.

“With the lifting of VAT exemptions of IPPs, lawyers, doctors and other professionals, there would inevitably be another round of power rate increases and an increase as well on the the service fees of professionals. At the least there would be a 20% increase on the charges of these sectors,” lamented Ramos.

As for his part Carl Anthony Ala, public information officer of KMP, “ if only the government would listen and instead go after the tax evasion cases of large corporations that would amount to P54.1 billion if all is collected. Another option is the elimination of overspending and corruption in government which would net a whopping P160 billion. This alone is double the P80 billion expected collection from the VAT bill, but instead of concentrating on this and curbing corruption. The Macapagal-Arroyo administration preffered to pick on the hapless Juan Pasangkrus,”

“The regime has also used the agricultural sector as a shield to deflect critics that the VAT increase would not affect basic commodities particularly rice, fish, meat and other agricultutral products. But by our computations the prices of these commodities would increase by at least 20 % due to input and output VAT, because there are many processes agricultural products go through and each stage is VATable. The spin doctors of the Palace are churning out blatant lies to cushion the massive opposition to the hated bill,” ended Ala. # # #
 

KMP - 2 February 2005