Palace renews warning vs profiteers as toll VAT takes effect

As the 12-percent value-added tax (VAT) on toll rates took effect Saturday, Malacañang renewed its warning to unscrupulous traders who use the higher toll as an excuse to raise prices of some goods and services. Deputy presidential spokesperson Abigail Valte said the government already made a commitment that the effect of the toll VAT on goods and services should be minimal. “This is our commitment. According to our computations, the impact on goods and services will be minimal and we will be watching those increasing their prices beyond computations we have set," she said on government-run dzRB radio. She also said that while the executive department is “bound to implement" the higher fees because the Supreme Court had allowed it, it will go after those who abuse the toll VAT. “We will not hesitate to go after those who will abuse and use the excuse of the VAT on toll to unduly increase their prices," she said. Valte also reassured the public the proceeds of the VAT will be put to good use, adding the Budget Department has taken every effort “to make sure that public funds are spent wisely." Last month, Valte said the Department of Trade and Industry (DTI) will monitor prices of basic goods, especially those brought to Metro Manila via the North and South Luzon Expressways (NLEX/SLEX). “The DTI will be monitoring the prices. The department knows what will be the VAT’s impact on basic goods and services. They will know the traders who overcharge for their goods," she said. The government started implementing the 12-percent VAT on the NLEX and SLEX starting October 1, saying that it can generate at least P3 billion in revenues a year. — LBG, GMA News