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Bacolod City, PhilippinesThursday, January 19, 2012
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‘Suspend VATon oil’

A party list congressman yesterday accused the government in a press release of "feeding on the misery of the people" by collecting windfall revenues from the value added tax on oil and reiterated a call for the suspension or scrapping of the tax.

Bayan Muna Rep. Teddy Casiño said “The least the administration can do now is to suspend the collection of VAT on oil considering that we are experiencing two oil price hikes a week. The government should not benefit from the misery of the people,” he said in the press release from his office.

Casiño said that being a percentage tax, VAT collections increase with the hike in oil prices. As a pass through tax, it is the consumers who bear the brunt of the burden.

To date, unleaded and premium gasoline prices have already increased by P3.20 per liter, regular gasoline by P2.55 per liter, diesel by P2.70 per liter, and kerosene by P2.60 per liter, the press release said.

"This means government is already earning over and above what it should. Pati gobyerno nakikinabang sa paghihirap ng tao. We have to put a stop to this cruel situation," Casiño said.

If VAT on oil is scrapped at least P6 will be slashed from current prices and would be a welcome relief to consumers. It would also stave off the clamor from some transport groups for a jeepney fare increase, the press release added.*

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