Workers unpleased with Arroyo’s dole-out gimmicks to maintain VAT on oil, power

Kilusang Mayo Uno today slammed the Arroyo government for its latest subsidy programs falsely credited to the benefits from VAT. 

“Arroyo seems to be in so much panic now amid the people’s clamor against the skyrocketing of prices,” said Wilson Baldonaza, KMU Secretary General. 

“Arroyo and her cohorts cannot hide anymore the fact that one of the main burdens that add heavily to rising prices is the VAT. But instead of yielding to the people’s demand of scrapping VAT on oil and power, she now hastens to implement a gimmickry of programs to assert that VAT is beneficial.” 

Baldonaza questioned the sincerity of Arroyo’s programs by citing that 90 percent of VAT collections only go to debt service payments. Also, he reminded that since the EVAT was imposed on oil and power last 2005, the government’s primary concern is to raise funds for debt payments, and never for social services. 

“Budget for social services consistently declined amid the imposition of VAT, in contrast to debt service payments. Why does Arroyo attribute now her pretentious social service dole-outs to VAT? So these will be remembered enough until the 2010 elections? 

“She should refrain from offering band-aid solutions that do essentially nothing to alleviate the dire conditions of the people.” 

Baldonaza also cautioned that such projects could be another source of corruption. “The P1,500 proposed subsidy to poor farmers, for example, could take the fate of the P728 million fertilizer fund scam, which Arroyo used for her 2004 election campaign.”

Baldonaza cited that savings from the scrapping of VAT could amount to P150 per day for a jeepney driver running on 30 liters a day, and P69 per tank for a household that uses an 11 kg LPG tank. 

The labor leader also pressed for the immediate legislation of the P125 across-the-board wage hike to help people cope up with high prices. 

“Until Arroyo acts on the scrapping of VAT and the meaningful increase in wages, she has more reason to be in panic. Dole-out programs and other gimmicks will do nothing to save her from the people’s wrath.”###