Youth alliance do the math to show VAT a heavy burden on students

MANILA, Philippines — Students can save at least P710 per month if the value-added tax (VAT) is scrapped, a youth group contended on Friday. During the launch of their nationwide campaign calling for the cancellation of the 12 percent VAT on basic consumer goods, the Youth ACT Now! (Youth for Accountability and Truth Now!) said the figure belies the government’s claim that the VAT benefits the poor. The group referred to President Gloria Macapagal Arroyo’s July 28 State of the Nation Address in which she rejected demands to scrap the VAT, saying to do so would result in huge budget deficit for the government. Budget Secretary Rolando Andaya Jr earlier described the VAT as a way of collecting an extra amount from those who can afford to buy and using the money for projects that would benefit the poor. “To justify continuous VAT collections despite growing public outrage, Arroyo attributed infrastructure investments, government subsidies and economic programs to revenues acquired through VAT collections. We beg to disagree," Youth ACT Now! Spokesperson Alvin Peters said in a statement. Peters said their campaign dubbed “Suma-Total: Do the VAT Math" aims to “discuss and reach out to the broadest spectrum of the youth sector how the VAT burden affects them." “We believe that VAT impositions on power and petroleum products as well as the 12 percent mandatory VAT collection on almost all consumer products are a burden that Filipinos, in these hard times, would be better off without," he said. The group based its figures on current prices of food, school supplies and toiletries that the average Filipino student buy. It said the P708.12 VAT collected from an average college student per month is equivalent to: - Food for 5 days - School supplies for two additional months - Toiletries good for six more months - Two weeks’ worth of transport fare - A book, or more funds for photocopying needs - Almost half of a month’s cost bed space/boarding house rentals Ken Ramos, Youth Act Now! Convener, said the Suma-Total campaign will also launch a signature campaign, a resibo (receipt) drive, lobbying efforts in the Senate and Congress and a massive information drive through forums and discussions. Its National Youth Action Days against the VAT were set on August 15 and 22. Spearheading the campaign are the alliance’s member organizations, the National Union of Students of the Philippines (NUSP), College Editors Guild of the Philippines (CEGP), Kabataang Pinoy, Student Christian Movement (SCM), Liga ng Kabataang Moro, Youth Revolt, Anakbayan and League of Filipino Students (LFS). - GMANews.TV