Philippines: No Suspension of Oil Import Tariff, VAT

Aquino was urged on April 1 to expand the government's fuel discount program to include fishermen and farmers.

Eastern Samar Rep. Ben Evardone said farmers are often voiceless, compared to the noisy transport groups in Metro Manila.

"Their interests are thus largely neglected," he said.

"We welcome the fuel subsidy program of government, but it should include the other vulnerable sectors like fishermen and farmers.

"They are among the hardest-hit by the unabated increases in fuel prices.

"While the subsidy program in Metro Manila is laudable, the government should provide similar assistance to farmers and fishermen."

Evardone said in his province, many farmers and fishermen use diesel and gasoline for their motorized boats and farm machineries.

Diesel is selling for P52.65 per liter in Eastern Samar, while gasoline is priced at P62, much higher than prices in Metro Manila, he added.

Evardone urged the Department of Energy to check prices in the provinces and ask oil companies why they are making a killing outside the metropolis.

On March 31, 2011, Bayan Muna Rep. Teddy Casiño said the fuel discount ordered by Aquino would have a limited impact as it would be enjoyed by only one sector.

"High oil prices affect not only the transport sector but everyone – housewives, power consumers, manufacturers, farmers, fishermen, motorists," he said.

"The Malacañang-approved discount is simply not enough."

Casiño said the better way of cushioning the impact of high oil prices on the public in general is for Aquino to suspend the collection of the 12-percent value added tax on petroleum products.

"VAT suspension will benefit not just one sector but all," he said.

Casiño said the administration could afford to temporarily forgo VAT collections until the price of world crude stabilizes.

Finance officials have cited that the government has accumulated a P4-billion VAT collection windfall from high oil prices, he added.

Casiño said these officials are projecting that the amount would soar to P28 billion this year if prices remain high.

Suspending VAT collection on oil would be a small sacrifice on the part of the government, which can continue collecting VAT on all other products and services, he added.

Angara: Use eco-friendly electric vehicles

Sen. Edgardo Angara urged on April 1 the development and use of eco-friendly electric vehicles to shape the future of the public transport system.

The chairman of the Congressional Commission on Science Technology and Engineering (COMSTE) said it is time the Filipino riding public start using as mode of transportation eco-friendly electric cars and motorcyles.

Angara said China-based electric vehicle manufacturer BYD Co. Ltd. expressed renewed interest in becoming a player in the local e-vehicle scene.

He also expressed support for the new eco-jeepney program of the Department of Energy (DOE) and the initiative of Iloilo City, which recently launched an electric jeepney program.

Angara also urged the government to fast-track the development of the electric vehicle industry by providing additional incentives and tax breaks for electric and hybrid manufacturers and importers.