Aquino admin won't ask for a repeal of VAT on petroleum products

Malacañang officials on Tuesday said repealing the value-added tax on petroleum products is not being considered to ease the effect of oil price increase, because it has no direct effect on the transport sector,   “Removing the VAT on oil is not being considered,” deputy presidential spokesperson Abigail Valte said in a text message to reporters.   At a press briefing, presidential spokesperson Edwin Lacierda said they want to be target-specific in terms of assisting the affected sectors.                                                           “It is not a direct assistance kasi even those who are — let’s say the rich —they will also benefit from that… So removing the VAT is not one of those being considered right now,” he said.   Removing the VAT requires the act of Congress. “If you’re going to reduce the VAT or eliminate the VAT, it has to go through the legislative mill. It requires a legislative act,” Lacierda said.   The P198-million budget for the reloading of Pantawid Pasada Program has already been released to the Department of Energy, Lacierda noted.   “Si (Energy) Secretary Rene Almendras is in the Palace and I just spoke to him and, in fact, kakakuha… they just… they got the SARO (special allotment release order) of P198 million plus. May pondo na po, so it’s being implemented,” he said.   President Benigno Aquino III ordered the DOE to give each of the 100,000 beneficiaries of the program an addition P1,200 load.                                  In May last year, jeepney drivers received Pantawid Pasada cards , each having a P1,050 load in a targeted assistance program to give them financial support amid rising oil prices.                                           Drivers need to present the cards to gasoline stations, which will then discount their fuel purchases based on their remaining credits. — VS, GMA News