NR0328:UP 11's paper on VAT

Mula sa Tanggapan ni Anakpawis Rep. Crispin Beltran
News Release March 28, 2005
House of Representatives, South Wing Rm 602
931-6615 Ina Alleco R. Silverio, Chief of Staff
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Solon calls UP School of Economics paper "apologist" in nature; says Congressional special session shows twisted political will

Anakpawis Representative Crispin Beltran today said that the 11 professors of the University of the Philippines School of Economics who said that the passage of the value-added tax bill was crucial to saving the economy were analyzing the issue using a microscope - "They're definitely not seeing the whole picture. It's a very myopic way of analyzing the VAT bill, the economic crisis, and the impact of both on the livelihood and welfare of the Filipino people," he said.

Beltran said that the UP School of Economics is living up to its reputation of being a defender of government policies that strike at the core of the poor's general interest. "The national government can always depend on the UPSE to support measures that will prop up big business, regardless of the violent impact on the rest of the working population," he said. "This study released by the 11 professors are a testimony to the lies being peddled by the administration regarding the crisis and the tax measures: those who support it are the ones who will not be severely affected by the VAT as they have the ways and means to protect themselves economically. It's not surprising that the UPSE has come up with such a paper - the institution remains true to its orientation."

Beltran said that the UPSE's arguments and explanations justifying the passage of the VAT bill were apologist in nature. "It's clear that the 11 professors see and acknowledge the macroeconomic situation and how the VAT and other tax measures will prove disastrous for majority of Filipinos; but instead of exposing the VAT for what it really is - a regressive, anti-people tax measure imposed by the government's foreign creditors - the paper chooses to defend the VAT and recommend that the people be resigned to it as well," he said.

"Ordinary Filipinos with the slightest understanding of taxes are not fooled into believing that the country's economic woes will be solved with the passage of a higher VAT rate, nor to pass other tax laws in lieu of increasing the VAT. In reality, all these taxes are just passed on eventually to the end-consumers. The 11 UP SE professors should have written a paper that exposes the scam behind all these forms of taxes and how VAT, as well as other taxes, end up in the accounts of corporations and manufacturers."

Finally, The veteran labor leader turned lawmaker said that President Gloria Macapagal-Arroyo's call for special congressional sessions to finalize the VAT belies that accusations that the administration has no political will.

"The Arroyo government has strong political will -- but it's directed towards the passage and implementation of measures and programs that go against the will of the Filipino people. Congress is being convened in a special session to finalize a bill that will bring added burdens for the poor and the working people; this is an outrage because it can't even give a day to begin deliberations on the P125 across-the-board wage hike bill which already passed 1st reading last August," he said. #