Toll VAT no reason to hike prices, says Palace

Deputy presidential spokesperson Abigail Valte. INQUIRER

Malacañang on Saturday warned businesses of dire consequences if they use the government’s collection of the 12-percent value-added tax (VAT) on toll which took effect Saturday as an excuse to raise the prices of their goods.

Deputy presidential spokesperson Abigail Valte said the government’s computation showed that the impact of the higher tolls as a result of the VAT would be insignificant.

“The impact on goods and services will be very minimal and we will be watching those who will be increasing their prices beyond the computations that we have set,” said Valte in an interview over state-run radio dzRB.

“We will not hesitate to go after those who will abuse and use the excuse of the VAT on tolls to unduly increase their prices,” she added.

Valte issued the warning on the first day of the implementation of the VAT Law on Luzon tollways amid calls for the government to suspend the collection.

“Let us just repeat … that the VAT on toll was contained in a Supreme Court decision that the executive branch is bound to implement,” Valte said.

Valte said it was the government’s policy that the taxes collected would be spent properly for the country’s benefit.

“(Certainly) it is our policy to make our countrymen feel where their taxes go to make sure that (the revenues) don’t go where they shouldn’t,” she said.

Malacañang on Friday, the eve of the implementation, said the collection of the VAT on tolls wouldn’t be stopped.

Presidential spokesperson Edwin Lacierda said the increase in tolls shouldn’t increase the cost of transport fares and goods passing through the expressways.

“The idea of suspending (the collection of VAT on tolls) is born of the fear that the huge increase in tolls would have a corresponding effect on consumers and passengers,” Lacierda said in Friday’s news briefing in Malacañang.