Press Release
January 28, 2008

MAR: ENERGY SUMMIT GOOD, BUT PEOPLE NEED URGENT RELIEF
SUSPENDING VAT ON OIL DOABLE, BUYS TIME FOR GOV'T REFORM

Senator Mar Roxas expressed hope that the government's Energy Summit, scheduled to start tomorrow (Tuesday), would hammer out a master plan in response to the 'abnormal' situation of high oil prices; even as he called for immediate relief to the public through the suspension of the value-added tax (VAT) on oil and petroleum products.

"It's good to have a summit on a vital problem. It's not so good if the results are meant to cover up the government's inability to provide urgent relief to our people," Roxas said.

He lamented that the summit agenda seemed to gloss over concrete measures to bring relief to consumers and commuters.

"Nakalimutan yata nilang isama ang pagtalakay sa mga panukala na magbibigay ng agarang ginhawa sa ating mga tsuper at maybahay. Kung tingin ng gobyerno na sapat na ang pagbawas ng taripa sa pag-angkat ng langis, nagkakamali sila," he stressed.

Roxas asserted that suspending the 12% VAT on oil will not only give the people--who are now suffering from the decrease in their purchasing power--immediate relief: it will also buy the government enough time to map out and implement long-term reforms.

"The Energy Summit must maintain a sharp focus on people's concerns and not muddle the agenda with too many technical debates," Roxas said.

"The smorgasbord of topics and proposals--from conservation to opportunities in gas exploration and even the revival of nuclear energy--provide forward looking solutions but does not resolve the impact of rising prices at the household level," he added.

"Good governance requires a sharp focus on specific measures and pour all efforts to implement these well. Pokus at buhos. Kung hindi, pakitang tao lang ang kauuwian ng lahat," he added.

"Meron na tayong panukala para suspindihin ang VAT sa langis, at nasusukat ang epekto nito: mahigit P4 kada litro ng diesel at P65 kada 11-kilo tangke ng LPG. I don't see this proposal included in the published agenda of the summit," he stressed.

He debunked claims that his proposal--which he filed as Senate Bill No. 1962--will only benefit the rich, saying that an average family's expenses on oil and petroleum products--whether directly or indirectly, through food and other goods--comprise a larger slice of the daily budget compared to the rich.

"Ang P120 na matitipid ng isang jeepney driver at P30 na matitipid ng isang mangingisda kada araw ay malaking bahagi ng kanilang kita. Marami na itong puwedeng tustusan: pagkain, gamot at iba pang pangangailangan," he said.

"What exacerbates our problem is that many middle-class families who are buoying up consumption--like those receiving dollar remittances from OFWs--are now feeling the crunch. Ang summit na ito ay dapat ding nakatutok sa kanilang kalagayan," he stressed.

Roxas stressed that his proposal stems from a very basic--yet often disregarded--principle: fairness, especially to those who sacrifice a part of their hard-earned pay to fund the government.

"Mas kailangan ni Juan dela Cruz ang pera niya ngayon kaysa ang pamahalaan. Ang pamahalaan, tapos na ang fiscal crisis, pero si Juan de la Cruz, lumalala ang personal niyang krisis ngayon: ang lumalaking butas sa kanyang bulsa," he said.

"Lalong nagiging mahalaga na unahin ang pangangailangan ni Juan dela Cruz kaysa ng pamahalaan: nakikita natin na hindi na nga nakokolekta nang tama ang mga buwis na kanyang ibinabayan, hindi pa tama ang paggastos nito," he said.

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