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‘Proposals for VAT on oil
scrapping won’t progress’

MANILA – House Speaker Feliciano Belmonte Jr. yesterday junked proposals to scrap the value-added tax in oil.

"I don't think it would get anywhere," said Belmonte in a press conference at the Hotel Sofitel in Pasay City when asked to comment on the proposal that seeks to address the spiraling prices of fuel.

Belmonte said VAT on oil is something that has been found beneficial to the country as it goes into the general fund of the government and the government can do a lot of things such as improving the nation's basic services.

"It took a long time to get this far, a lot of sacrifices, I think it’s still on the right track," he said.

For now, Belmonte said the government is doing all it can to mitigate the effects of high prices of oil, such as granting the petition of jeepney drivers for fare increase.

Reacting to this, Bayan Muna party-list Rep. Teddy Casino, one of those  who filed a bill at the House Representatives for the scrapping of VAT in oil, challenged the House leadership to tackle issue at committee hearings and just debate on the merits of the proposed measure.

"Let's debate on the merits of the proposal and see what can be done,"  Casino said.

"There is strong clamor for the oil VAT's reduction or removal. The House should do something on the 14 pending bills for the amendment, revision or repeal of the Oil Deregulation Law," he said.

Malacañang had earlier junked calls to reduce, if not remove, the 12 percent VAT in oil in the face of rising prices of fuel.

President Benigno Aquino III said that drastically reducing the price of fuel will increase consumption and ultimately lead to higher prices due to a higher demand.

The President said what the government can do is to mitigate the effects of rising oil prices like providing subsidy to transport groups through the pantawid pasada program.*PNA

 

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