Malacañang still not keen on suggestions to reduce VAT on fuel

Malacañang on Saturday indicated it is still not keen on suggestions to reduce the value-added tax (VAT) on fuel products in the wake of recent successive fuel price hikes. Deputy presidential spokesperson Abigail Valte said she would “seek guidance” from concerned officials, but reiterated cutting the VAT would mean slashing funding for social programs. “If you temporarily suspend imposing the VAT on oil, may mawawalan ng revenue, may programang mawawalan ng pondo, may taong matitigil ang benepisyo," she said on government-run dzRB radio. She also kept a noncommittal stance on at least reducing the VAT from its present 12 percent rate. Among those who have sought a reduction in the VAT rate were Vice President Jejomar Binay and former Budget Secretary Benjamin Diokno. Earlier reports quoted Diokno as saying the VAT on oil products could be reduced to 10 percent. “I will ask our Cabinet officials on their take. Kung naalala ninyo may proposal gawing six to eight percent, meron silang computations. I’ll seek guidance on this,” she said. On the other hand, she said lawmakers who want to suspend or at least lower the VAT can start the ball rolling in Congress. “Yes, that’s a good idea. If they really feel strongly the 12 percent is too high or they think there should be a suspension, the best place to start would be Congress,” she said. Protests Malacañang also said it is up to various groups to push through with their threats to stage protest actions against the fuel price hikes. “Karapatan nila yan ipahayag ang kanilang damdamin, ang gusto lang natin iparating sa lahat, meron tayong ginagawa (It is up to them, they have the right to air their grievances. What we want to say is that we are addressing the problem),” she said. On the other hand, she said there are steps – such as using other forms of fuel – but these cannot be done overnight as these are "long-term solutions." — LBG, GMA News