Palace frowns on calls to suspend VAT on fuel

Malacañang on Saturday, once again, frowned on new suggestions from some sectors to suspend the value-added tax (VAT) on fuel products amid recent price hikes on fuel products, even as it insisted the government is not helpless against the situation. Deputy presidential spokesperson Abigail Valte also hinted the government may be open to reviving a fuel subsidy program for drivers of public utility vehicles like jeepneys. “Sa usapin VAT, if you recall, naitanong noon sa pangulo ang issue sa pagtaas ng presyo ng produktong petrolyo sa Libya, at may panukala na i-suspend ang VAT. Kung naalala nyo, sabi niya, may pinupuntahan ang [naturang revenue]. Kung tatanggalin natin ang [VAT], matatamaan ang mga proyekto ng pamahalaan," she said on government-run dzRB radio. Besides, she said there are other programs that the VAT can fund, including the “Pantawid Pasada" fuel subsidy for franchise holders of public utility jeeps. Valte also hinted there is no need to audit the books of oil firms because these companies are required to submit their books to the Securities and Exchange Commission every year. According to her, the government is studying other possible measures to ease the plight of the transport sector in the wake of fuel price hikes. The suggestions may be taken up at a possible meeting between Aquino and representatives of transport groups. “Magkakaroon tayo ng dialogue with leaders of transport groups... The president wants to hear their concerns [and] find out what ways we can agree on to move forward," she said. Meanwhile, Valte said: “Hindi tayo helpless [laban sa pagtaas ng presyo ng petrolyo]... Naipakita natin sa pamamagitan ng subsidy...," she said. Also, Valte said the Department of Trade and Industry (DTI) will keep watch over prices of basic goods and make sure no one would take advantage of recent fuel price hikes. She also noted the Department of Energy issues weekly calculations on how much adjustments in fuel prices should be in a week. “As far as basic goods are concerned, we are monitoring the prices through the DTI. We will make sure all price adjustments are reasonable and not being abused," she said. — LBG, GMA News