Carlo Ople

This is in reaction to Ellen Tordesillas’ latest blog post entitled “Bagsak”. Apparently in a recent event in Bagiuo, President Gloria Macapagal Arroyo said that if they were to remove the 12% VAT on oil and electricity, where would she get the money for her pro-poor programs? I can’t help but agree with Ms. Tordesillas on this one. It’s pretty simple - if the government lifts the 12% Tax, then the money STAYS WITH THE PEOPLE, and I’m not just talking about the rich guys. Everyone, regardless of social class, uses transportation and electricity. You even use oil to cook food remember?

Besides, aren’t pro-poor programs suppossed to be business-as-usual for government operations? There should be a separate budget that is allocated specifically for pro-poor projects like micro-financing, subsidies, and relief aids. The fact that the government is relying heavily on an adhoc money maker like VAT (because of the price increases lately) just goes to show that they don’t know how to prioritize and rationalize their budgets.

Where should they get money to fund pro-poor programs?

LOOK AROUND AND STOP BEING BLIND.

We see roads being destroyed and rebuilt by the DPWH time and time again.
We see tarpaulins of Bayani Fernando, paid for by our taxes, plastered all over Metro Manila.
We see HUNDREDS of government officials going to foreign trips.
We see millions of pesos being given away as “incentives” for performing government officials.

The problem is not the VAT - the core issue here is how our government uses the budget. Because of their inability to do this, then I am for removing the VAT on oil because I know for a fact that the money generated will just get taxed by corrupt government officials and not 100% of the proceeds will go back to the people. By temporarily suspending the VAT, we give the decision back to the those that really matter - the Filipino people, and not some stuck-up government official counting millions and probably even billions in his/her bank account in some other country.