BAGUIO CITY—President Aquino remains firmly opposed to the scrapping or reduction of the 12-percent valued-added tax (VAT) on oil, saying it would only increase demand for oil in the country and eventually drive up local pump prices.
In a media interview at the Mansion House late Sunday night, Mr. Aquino said with the VAT on oil in place, the government has been providing relief directed to those most vulnerable to rising oil prices.
“If you lower prices, you are encouraging increased consumption, and we would have to increase our oil imports. If the demand goes up, so will the [pump] prices. How will that help? That is how we understand the situation,” he said.
Mr. Aquino said it would be better if relief is directed to the riding public and public transport operators.
He said removing or reducing the VAT on oil is a “generic” response to rising oil prices but what the government is already doing is “targeted” to provide relief to specific sectors.
He cited Pantawid Pasada or fuel subsidy to public transport which, he said, is directed to the operators and the riding public.
The President added that the government has delayed implementing the fare increase on public commuter trains—the Light Rail Transit and the Metro Rail Transit—which are subsidized by the government at a cost of P60 per passenger per trip.
“We have delayed implementation of the same given the fact that we don’t want to add to. . .the burden of the people in terms of the spiraling oil prices,” he said.
Mr. Aquino said he wants fuel prices in the country to go down, which is why the government is developing the country’s own indigenous fuel sources to lessen its dependence on oil. –Mia M. Gonzalez / Reporter, Businessmirror
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