The militant Kilusang Magbubukid  ng Pilipinas (KMP) at the  launching of the Koalisyon sa Agrikultura Kontra sa VAT or Kontra-VAT denounced the much hated Value Added Tax (VAT) bill as a double whammy to peasants who can bearly eke out a  living.
According to Ka Willy Marbella, spokesperson of KMP, “ we are doubly hit by the VAT because we are producers and consumers as well. We have to shoulder the increase VAT on the inputs of our products and we are also to be burdened as consumers because large companies will only pass the VAT on us,”

Prices of Palay inputs
TAON ABONO (Complete) HERBICIDE BILOCIDE PESTISIDYO
1994/1995 250.00   
1998 320.00-360.00 560.00 680 500.00-900.00
2001 400.00-500.00 1,002.00 1200 700.00-1,000.00
 Source: KASAMA-TK

“Let’s take urea for example which is now P875 per sack,P875 x 0.20= P175 + P875 original price=P1050 per sack of urea when VAT is added.

The price of rice is P16, P18, P20, P26 and the highest now is P30. Multiply each price with 0.20 then add it to the original price, the sum would be the projected relative price of rice when the VAT is approved. Below are the projected increase in the price of rice” 
 
P16 x 0.20=P3.2 + P16=P19.2
P18 x 0.20=P3.6 + P18=P21.6
P20 x 0.20=P4 + P20=P24
P26 x 0.20=P5.2 + P26=P31.2
P28 x 0.20=P5.6 + P28=P33.6
P30 x 0.20=P6 + P30=P36
 
“These computations have not yet factored in the VAT that have been incurred through the processes or the inputs that are used in the production of rice.If these are included then the increase in the price of rice would definitely be higher. The end result is that farmers would now resort to “tatlong kahig isang tuka” existence”. No thanks, to this bill and the administration pushing for it to be approved,” ended Marbella. # # #
 

KMP - 4 February 2005