Workers oppose railroading of expanded VAT, asks legislators to consider wage increase

While Malacanang is pressuring the House of Representatives to rush the approval of the proposed 2 percent Value Added Tax (VAT) , workers raise strong opposition to what they called as another economic burden for the Filipino people. “Sisingilin ng mahal ng mamamayan ang mga mambabatas na boboto pabor sa VAT. Sa halip na dagdag buwis, panukalang dagdag sahod ang dapat itaguyod ng Kongreso. Matagal nang naghihintay ang mga manggagawa na umusad sa Kongreso ang P125 wage bill.”

“We are not buying Malacanang’s claim that the expanded VAT will not cover noodles, bread and sardines which are among the common foodstuff affordable to ordinary workers and wage earners. The upcoming VAT hike will affect all social sectors.”

“Malacanang’s claim that the 2 percent additional VAT will not affect poor people is a complete lie. The poorest of the poor are likely to bear the brunt of new taxes imposed by the government. New taxes mean further economic distress for the people and more resources for corruption for government officials,” said KMU Executive Vice Chairperson Lito Ustarez.

The labor leader again questioned the motives behind the VAT hike as the Bureau of Internal Revenue (BIR) failed to collect more than 40 percent of the current VAT. Why impose another regressive tax when the local revenue collection is incompetent? Why impose tax hikes when the people are seeking for additional income?

Ustarez said that the railroading of VAT in Congress is certain especially now that the lateral attrition law has been signed by President Gloria Macapagal-Arroyo. But he asserted that workers will not accept the VAT hike without a fight. We will continue to expose the ill-effects of the expanded VAT and we will rally the people to oppose regressive tax proposal being pushed by the government.

AmCham opposes VAT increase, persuaded to lead wage hike

While the American Chamber of Commerce (AmCham) dissuades the VAT increase saying that it would pose a serious burden on the country’s poor and SMEs, Ustarez challenged the AmCham to set an example and lead an increase in the wages of the workers of its companies.

“Huwag na nilang intayin ang legislated wage hike, pangunahan na nila ang pagtataas ng sahod sa mga kumpanya nila. Wala pa ang VAT increase, hindi na magkandaugaga ang mga manggagawa sa presyo ng mga bilihin dahil sa napakababang pasahod,” Ustarez added.

In a position paper to the House of representatives committee on ways and means, the AmCham said that the VAT will translate to higher prices of goods to consumers and end-users adding that the current minimum wage of the workers cannot absorb the increase in VAT and other additional taxes.

Ustarez calls on the Congress to heed the call of the poor that will be gravely affected by the tax proposal.