Drilon opposes reso vs VAT on toll, fare hikes on LRT, MRT

(Updated 5:28 p.m.) Sen. Franklin Drilon on Wednesday voiced his opposition to the anticipated Senate resolution urging President Benigno Aquino III to suspend the imposition of value-added tax (VAT) on toll and the fare hikes on Metro Manila’s mass rail transit systems. “I am not in favor of the resolution because we have to look for funds," Drilon said in an interview with reporters after the day’s round of hearings on the proposed 2012 budget. Earlier this month, Sen. Joker Arroyo said a resolution is already circulating among senators urging Aquino to suspend the impending fee increases. “The idea is not to proceed… not now. Mahirap ang buhay ngayon," Arroyo had said. But Malacañang believes the public will see the importance of MRT and LRT fare hikes once it has been properly explained to them.. “I think this is a matter of explaining to the public and also to the senators, number one, the subsidy will continue, the subsidy will only be diminished—let me be clear with that," presidential spokesperson Edwin Lacierda said at a press briefing on Wednesday. He said continuous subsidy would not be beneficial to the government coffers in the long run. “We could use that subsidy elsewhere for other programs of the government," he said. The government earlier said it may cut down the subsidy by P2 billion every year, which is now pegged at P7.2 billion. Drilon, a member of Aquino’s Liberal Party, explained that proposals for the government to subsidize such fees will also not ease the public’s burden. “Kung subsidy, you’ll need funds. Where do you think will we get the funds? From taxes," he said. Drilon, who chairs the Senate committee on finance, also defended the fee increases against what critics describe as wrong timing amid rising prices of oil and other basic commodities. “Kailan ba naghirap ang taumbayan? It’s a policy issue. This administration believes that if we are able to reduce the subsidy, we can provide more services to the poor," the senator said. — Paterno Esmaquel II and Amita O. Legaspi/KBK, GMA News