Binay slams Arroyo’s VAT-sponsored veggie noodles
By Julie M. Aurelio
Philippine Daily Inquirer
First Posted 22:31:00 08/02/2008
MANILA, Philippines -- The yellowish veggie noodles may have been funded by the government's value added tax, but it would still be subject to the same tax when sold in the markets -- even to the poorest people, the intended beneficiaries.
An opposition leader on Saturday pointed out that the poor who will buy the vegetable noodles will still have to pay for its VAT, and it won't really help the poor cope with rising prices of food and fuel.
“Even as the VAT was used to fund the production of the veggie noodles, babawiin din sa mahihirap dahil may VAT pa rin ipapataw pag ito'y ibinenta (the poor will still have to pay for the VAT on these same noodles),” said Makati Mayor Jejomar Binay.
Binay, also president of the United Opposition, added: “Parang ginigisa sa sariling mantika ang mahihirap (It’s like frying them in their own fat).”
The opposition leader said that the poor were affected by the VAT more than the country's rich, and that the poor could hardly pay for the VAT imposed on goods such as noodles.
Early this week, President Gloria Macapagal-Arroyo presented the squash-enriched noodles which were produced using P10 million from VAT proceeds as her way to keep the VAT on oil and petrol products.
The opposition has been pushing for the temporary suspension of the VAT especially on basic commodities to help the poor cope with rising prices of food.
Binay pointed out that most poor families depend on instant noodles and other cheap substitutes because of the high prices of food, but he said even basic goods are still subject to VAT.
“If the government is really concerned about the poor housewife, the worker, and the small farmer, then suspending or lifting the VAT on oil and basic commodities is the way to help them ride out the crisis,” he said.
Binay reiterated his call to lift the VAT on oil and basic commodities and appealed to leaders of local government units to launch a people's initiative for the suspension of the VAT.
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