NEWS RELEASE - January 28, 2005
References: Connie Bragas-Regalado, Chairperson, 259-1145 & 0927-2157392

Gloria's 12% VAT bill is anti-OFW and anti-people

The MIGRANTE Sectoral Party joined the widening campaign against new taxes being pushed by the Macapagal-Arroyo administration, calling the railroaded Value Added Tax bill an anti-migrant and anti-people measure

"President Gloria Macapagal-Arroyo's operators in the House of Representatives have succeeded in railroading another tax measure, House Bill 3555 that adds 2% to the existing 10% Value Added Tax on a wide range of commodities and services, thereby adding more misery to a poor public long over-burdened by the economic crisis," MIGRANTE Sectoral Party chairperson Connie Bragas-Regalado said.

Migrante said that the increased VAT percentage is the Macapagal-Arroyo administration's action on the recommendation of the International Monetary Fund Post-Program Monitoring Team to incrase the regressive tax last July 8, 2004.

"We overseas Filipino workers and families do not believe Congressmen who allege that basic commodities shall be exempt from the increased VAT rate. Taxes on the manufacture and packaging of sugar, coffee, bread, cooking oil, sardines, noodles, clothes, shoes, medicines, communications, construction materials, and other needs will push prices even higher. We will definitely suffer along with the poorest of the poor. The bulk of whatever little wages we get abroad cannot basically catch up with the rising costs to live in the Philippines. This new tax measure will indeed add a heavier burden to us OFWs and families," Bragas-Regalado said.

The cost of living for a family of six in the National Capital Region is pegged at P602.31 for a family of six or P498.04 on the average nationwide. The prevailing daily minimum wage, however, is only P250 for non-agricultural workers and P213 for agricultural workers. The gap between the minimum wage and cost of living ranges from a low of P352 to a high of P389.

"The 12 % VAT that will be imposed nationwide will spare no one, not even OFWs and their dependents who already suffer from wage cuts under foreign employers and general neglect from the Macapagal-Arroyo administration," Bragas-Regalado said.

Migrante reiterated that "one-third of the 2005 national budget of P907 billion is earmarked for foreign debt interests (P301.6 billion). If we add the P344.1 billion automatic appropriations for principal debt, a total of P645.7 billion of the budget is going to foreign bank creditors this year."

"There is in fact no item in the national government budget for direct services to OFWs and their families. What government has in store for us and rest of the poor majority are taxes and more taxes that will break our backs. We shall actively work for junking the increased VAT measure and all other regressive taxes on OFWs, their families and the people," Bragas-Regalado ended. #