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By Francis Earl A. Cueto, Correspondent
The incoming National Economic Development
Authority Director-General, Ralph Recto, said Saturday he would
propose changes to the expanded value-added tax (E-VAT) that will
help ease the burden of surging prices on the masses.
Recto, a former senator who authored of the
Expanded Value-Added Tax Law, said he would review his law and
present ideas to President Gloria Arroyo after he formally assumes
his new post on Monday.
“Everything is possible,” the former senator
said during an interview on the government-run radio station dzRB.
“But I will have to take a look at the pros and cons of all these
proposals,” he added referring to the possibility of imposing a
specific tax as an alternative to VAT.
He said he has sent text messages to President
Arroyo about his initial ideas. “We have not spoken yet. [But] up
to last week I’ve been texting her with regard to some ideas.”
He added that he will propose new policy
directions but did not elaborate.
He conceded that amending the law would be hard,
even amid calls to remove VAT on oil, a move that proponents argue
would bring down pump prices.
Recto ran for re-election to the Senate in the
last national elections, and political pundits blame his loss on
public sentiment against having to pay higher VAT because of the law
he authored.
Government economists, on the other hand,
defended E-VAT, saying the additional tax revenues collected helped
reduce the budget deficit.
The Department of Finance is expecting VAT
collections for 2008 to go up to P119.59 billion, with about P18.6
billion from the 12-percent VAT on oil alone.
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