VP bets propose alternatives to P200 monthly ayuda for inflation-hit families

MANILA, Philippines — The government's proposal to dole out P200 of financial aid per month to impoverished families is not enough to help them cope with the sustained fuel prices, according to vice presidential bets, who on Sunday gave alternatives on how officials can better address the issue. 

During the second day of the Pilipinas Debates: The Turning Point hosted by the Commission on Elections (Comelec), some bets suggested the suspension of the collection of fuel excise taxes, while others said the administration should prioritize renewable energy (RE).

Deputy House Speaker Lito Atienza and Davao Mayor Sara Duterte-Carpio were not present at the event. Both candidates had empty podiums. 

Francis "Kiko" Pangilinan

Sen. Pangilinan reiterated his call to suspend fuel excise taxes, which have been in place since 2018. 

The excise tax on gasoline currently stands at P10 per liter, P6 per liter for diesel, and P5 per liter for kerosene, according to the Tax Reform for Acceleration and Inclusion (TRAIN) Law

He also said the government should immediately release the subsidies for two of its fuel programs- the Pantawid Pasada program for the transport sector and the fuel discount program for farmers and fisherfolk. 

"If the government acts with urgency in the release of these subsidies, these will greatly help Filipinos," he said during the debate. 

Earlier, the Philippine government doubled the subsidies for these two programs to P6.1 billion from P3 billion. The State decided to roll out these programs as fuel prices continue to increase due to tight global supply. 

Pangilinan added that the government should directly buy produce from farmers and fisherfolk who were greatly impacted by the rising costs of gas, instead of going through public biddings before the purchase. 

Carlos Serapio

The government should look at providing some sort of "energy relief" to consumers, according to Serapio. 

He did not explain this in detail, however. 

Serapio echoed the statements of other candidates, saying that the proposal to give P200 per month to poor families affected by the fuel price hikes is not enough.

Vicente Sotto

Senate President Vicente "Tito" Sotto III echoed calls to suspend the collection of fuel excise taxes, but added that the government should allow for the increase in minimum wages in Metro Manila and provinces. 

He explained that the minimum wage in the National Capital Region should be set to P1000 and up to P800 for provinces, based on the decision on their wage boards. 

The current minimum wage in the capital stands at P537 per day.

"Some employers may be against [the minimum wage increase]. So we should give them tax breaks. It doesn't matter if the government suffers, as long as the people don't," Sotto said in Filipino. 

He said the government is used to borrowing money, but ordinary citizens often have to resort to the 5-6 scheme- where they are charged interest rates of 20%- just to put food on their tables. 

Sotto also said the government should look at focusing on developing RE like solar power.

Walden Bello

Like Sotto, Bello said he and his running mate Ka Leody de Guzman, a labor leader, have pushed to increase the minimum wage to P750 throughout the country. 

For him, it is important for the government to focus on RE as mandated by the Renewable Energy Law of 2008, and implement price controls.

"We really need to use price controls as a legitimate form of keeping down prices. We need to start using price controls with trigger mechanisms," he said.

Right now, the Department of Energy wants Congress to amend the oil deregulation law so that the state can regain control over the pricing of petroleum products, which is currently being dictated by market forces. 

Rizalito David

Like Pangilinan, David joined calls to suspend fuel excise taxes and said the imposition of the VAT (value added tax) must also be halted.

He added that the government should focus instead on "pouring money" on small businesses as it moves to help the economy recover amid the pandemic. 

"We should directly give [the aid] to small businesses," he said.

Manny Lopez

Lopez said that the country needs to develop RE, seen by environmental groups as a viable alternative in providing power to the national grids. 

He added that the country should have a "more aggressive exploration initiative" in looking for sources of crude oil. At present, the Philippines is mainly dependent on imported oil, making it vulnerable to changes in the global market. 

For Lopez, the government should use "moral suasion" in convincing oil companies to stop raising pump prices. 

"We're not really dependent on Russian oil. Russian oil supply globally represents less than 10% of the global supply of crude oil. On top of that, we can supplement [our oil] if Saudi Arabia and United Arab Emirates increase supply," he said. 

Willie Ong

Ong, who is running alongside Manila Mayor Isko Moreno Domagoso, also highlighted the importance of developing RE, which he believes will be cheaper for the country in the long run. 

He said Moreno plans to lower the taxes for petroleum products and electricity. 

According to Ong, the early distribution of financial aid can help alleviate the situation of Filipinos. 

"In the City of Manila, Moreno gave early financial assistance. In Feb [or] March, ayuda was already given to 700,000 families- rich or poor. The financial aid is always early," he said.