VAT Increases Gov Revenues by 22% vs ‘07
This is the best example to illustrate how big the impact is of the VAT on oil on government revenues. Because of the 12% interest rate on the growing oil prices, the government’s revenue for the first half of this year is 22% higher than that of 2007. Normally this would be a good thing - however the fundamental problem with this administration is the lack of trust. We don’t believe in our President’s capability to efficiently implement projects without giving majority of the funds to Congressmen and other cronies. Out of the 22% increase, how much do you think went to corruption? How many went to actual long-term reform?
I still standby my support for the suspension of the 12% VAT on oil products for 6 months. If we won’t suspend it, then we should at least lower it to a fixed amount so as to cushion the blow for the Filipino people. And when you say that the VAT on oil only affects the rich, then you’re sadly mistaken. It’s the high prices of oil that’s driving the increase of other basic products. Let’s face it - everyone uses oil, and the more oil costs, the more people will have to suffer.
