Collection of higher VAT on toll starts today

MANILA, Philippines - Malacañang yesterday said it would not stop the implementation of the value added tax (VAT) on toll from being implemented today even if there had been calls to defer it to allow people to recover from the damage wrought by typhoon “Pedring.”

Presidential spokesman Edwin Lacierda said the idea of suspending (the VAT on toll) “is borne from the fear” that it would result in much higher fares and prices of goods.

Lacierda said Bureau of Internal Revenue Commissioner Kim Henares had explained the effect of VAT implementation on goods, passenger buses and commuters would be very insignificant.

For instance, a P56-increase on toll would not mean the fare would automatically rise from P100 to P156, Lacierda explained.

“That P56 incremental increase is going to be shared by the passengers and therefore that will be small... also on the goods, we have already mentioned that on a cost per good on a per kilometer basis, the impact is minimal,” he said.

Lacierda dismissed claims that the implementation of VAT on toll would result in increase of fares and prices of commodities.

“Beyond 12 percent, if somebody is going to increase the cost of goods higher than 12 percent, that is something that we will seriously look into because that is not, should not be the effect of the increase in VAT,” he said.

Lacierda said there was no discussion yet on whether the President would meet with the groups opposing the VAT on toll.

“Again, we would like to emphasize that the VAT on toll, the proceeds of this will always go to our social programs. So, we will just ask the public to look into it and the overall perspective,” he said.

Transport groups led by Piston (Pagkakaisa ng Samahan ng mga Tsuper at Operator Nationwide) called on Malacañang to suspend the VAT on toll to relieve consumers from an added burden in the aftermath of Pedring.

Piston secretary-general George San Mateo said the collection of VAT on toll fees would be insensitive to the public already reeling from the destruction brought by the typhoon.

“We are calling on President Noynoy to suspend the collection of the VAT especially since many of our countrymen were affected by Pedring. It would be insensitive of the government especially the BIR to insist on collecting the VAT,” San Mateo said.

He said another reason to delay the collection of the VAT on toll fees was the declared intention of a number of senators to file a bill exempting toll fees from VAT collection.

The Toll Regulatory Board (TRB) said the VAT that will be collected starting today has satisfied all the requirements for its collection.

TRB spokesman Julius Corpuz said there are no legal impediments to stop the implementation of the VAT. – Aurea Calica, Rainier Allan Ronda