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Enrile opposes reduction of VAT on petroleum products

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Senate President Juan Ponce Enrile opposed on Tuesday the suggestion of some sectors and fellow lawmakers to reduce the value-added tax (VAT) imposed on petroleum products amid unabated oil price hikes in the world market.

”If we will reduce VAT, other requirements of the government will suffer. Then the people will protest, no money for education, for defense and infrastructure,” Enrile said.

Enrile said the government can do nothing to stop the oil price hikes triggered by winter season in the Western countries, including the United States.

”It’s height of winter in the western world. You have to expect strong demand for oil. How can the government of this country control another country,” Enrile said.

To combat the domino effect of the oil price increases, Enrile encouraged the Filipino people to work hard to help the country in achieving progress.
”No one can produce the money to develop this country except the people themselves. We should work hard, strive hard so that this country will achieve progress,” Enrile stressed.

Enrile also expressed doubts whether amending the oil deregulation law could stop the series of oil price hikes that forced the transport groups to petition for fare increase.

”How can we amend the law? Well, get the genius to come up and do it for us. I will challenge them to do it. Let’s see if they will succeed,” Enrile said.
Last Tuesday, Senator Manny Villar said he is in favor of reducing the VAT on oil products but “this should be studied first properly by the legislators.”
Villar also favors amending the oil deregulation law.

By PNA





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