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Friday, July 11, 2008

 

ENTHUSIASMS & FOREBODINGS
By Rene Q. Bas
Thank God for the oil crisis

 
One of the things the sage and saint, Josemaria Escriva, taught is for us to thank God for humiliations, sufferings and whatever gives us pain and discomfort. All of these bad things, if we had our minds on the final goal, would improve our character and lead us to God.

They also make those who sincerely want to learn from experience and reality to make necessary and beneficial lifestyle changes.

The severely steep rise of oil prices is something we Filipinos should welcome in that spirit.

Improvement in traffic

One of the effects of the high price of gasoline is the improvement in the traffic.

A lot of middle class people are now using the LRT and the MRT trains. These people have a lot of clout if they got together and decided to be assertive. When they become regular riders of the LRT and the MRT they will realize that the government must do something about improving the public transport system. They will then use their clout to get the government to build more train lines and make the country’s city-commuter train systems as pleasant, efficient and safe as those in Hong Kong and Singapore—or Boston, London, Frankfurt and Tokyo. Or even Rome and Paris.

Having such a world class city-commuter Metro (the Tube or the Underground to Londoners or the T to Bosto­nians) will immediately transform Filipinos in the National Capital Region into persons like First World people. I’ve heard that an ADB official was so impressed with the lifestyle change in Filipinos since the oil crisis struck us really hard a week or so ago. His Filipino friends were no longer late for meetings because they had been leaving their cars at home and using the MRT!

One thing that never fails to strike Filipinos who live in Hong Kong, Singapore and the key European cities is that the lords of wealth and government power take subways and elevated trains just like ordinary businessmen, members of parliament, lowly clerks and janitors.

Feudalistic mindset

The decision to have very good, pleasant and prompt trains that will serve the basic travel needs of the rich, the middle class and the poor alike will cause a change also in the way Filipinos view each other. A good part of the feudalistic mindset will disappear. Janitors will feel uplifted by the realization that his big boss, and even the big bosses of this nation, take the same train he uses.

And the big bosses will learn to respect the God-given human dignity of the lowlier specimens. Everyone in a commuter train would be subject to the same Jemaah Islamiya bombing threat or the inconveniences of a Meralco outage.

The lords of wealth and power who use the trains will insist, along with the poorer riders, that these be properly air-conditioned and kept spick and span. Something to an extent like this happened during the era when Madame Imelda Marcos’ Love Buses were in operation and the LRT trains were new.

The benefits of being forced to make lifestyle changes have to do with my objection to the suggestion of our beloved Catholic bishops, among others, to temporarily suspend the E-VAT on oil products for the sake of the poor.

Pro-poor projects

Suspension of the 12-percent sales tax on oil products will mainly benefit the rich. The poor will not benefit much for they use very little oil products. They use all the little money they have for food. The government’s loss of P73.1 billion from the E-VAT on oil products will hinder ongoing pro-poor projects.

Until the proposals to suspend the E-VAT on oil products surfaced, few realized that there was a “windfall” of collections for the government.

When the Expanded Value Added tax amendment to the Tax Code was passed in 2005, the price of a barrel of crude in the global market was $70. The 12 percent E-VAT was based on that cost. With the government’s E-VAT revenues so many pro-poor projects, educational and health services, livelihood programs, etcetera could be funded. Now the cost of crude is more than double and might even triple before the end of 2008. That means government coffers have had a massive “windfall.”

The Times’ Senior Reporter Efren Danao wrote about a penetrating question from Sen. Francis Escudero. If there is a “windfall” revenue from the E-VAT on oil, where is it? The amount of E-VAT “windfall” revenue (based on the price of crude above the $70 per barrel price when the E-VAT amendment was passed) is supposed to be P18.6 billion until end of 2008—and growing.

I think the money’s there. And that’s why President Arroyo can afford to give away P500 to poor families who are friends of her LGU allies and to sell imported NFA rice at subsidy prices to the lucky poor who can get Access Cards. Let’s hope and pray hard that not too much of the windfall E-VAT money goes to the pockets of government officials and their relatives.

rq_bas@yahoo.com
rqb@manilatimes.net

   
 

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