No price increase due to eVAT says bizmen

The Cebu business community assured consumers that they are not going to increase prices of commodities in relation to the implementation of the Expanded Value Added Tax (eVAT) Law.

This was the assurance made by Carlos Co, vice chairman for Visayas of the Philippine Chamber of Commerce and Industry, who said that they are policing their ranks to make sure that nobody will take advantage of the situation.

Cebu City Mayor Tomas Osmeña is urging the business sector, especially wholesalers and retailers, to demonstrate their solidarity with the city in coping with the effects of the eVAT implementation by selling at least one basic commodity at cost.

"I think that is not too much ask. The business sector can at least sell one basic commodity like sugar, toothpaste, cooking oil among others on sale and that's already a big help," the mayor said during his press conference yesterday.

Osmeña however warned that if businessmen would unite in increasing their prices, the city government is willing to come in by buying essential goods from other provinces, which are selling cheaper items than what is being sold in Cebu. Co, who is also the immediate past president of the Cebu Chamber of Commerce and Industry (CCCI), said if ever there is an increase it will just be minimal considering that most of agricultural products are not affected of the eVAT Law The mayor, on the other hand, admits that the city cannot close firms or suspend the issuance of business permits to those who are overpricing their goods or items. The mayor believes that the Cebu business community will not take advantage of the eVAT implementation since in recorded history businessmen here are making money already.

This developed as some 50 members of urban poor and workers groups yesterday staged a protest rally in front of the regional office of the Bureau of Internal Revenue to condemn the implementation of the eVAT.

During the rally, members of the Bukluran ng Manggagawang Pilipino, Labor Power Council and Kongreso na Pagkakaisa ng Maralitang Lungsod dramatized the effect of the new tax law on them by eating "lugaw" and salt for lunch.

They also distributed leaflets to jeepney passengers, motorists and passerby explaining eVAT and its effect and urging people to join the nationwide strike and protest on November 10.

Edwin Ruaza, BMP chairman said that lugaw (porridge) and salt depict the plight of the poor Filipinos who could not afford to buy good food because of poverty and high prices of basic goods.

With the implementation of eVAT, he added that the plight of the poor would only get worse because they are burdened by high prices of goods.

LPC-Mandaue chapter chairman Joel Pelayo said that with the increase in the prices of basic commodities, workers, especially those who are daily earners would lose a big part of their earnings.

"We hope that Arroyo will hear our demands and immediately implement the legislated wage increase," he added.

Workers also find hope in the recent announcement by Malacañang that it is open to the possibility of a legislated wage increase.

Not only that, they also asked the legislators to enact a law that would exempt daily wage earners, particularly those earning less than the living wage from tax duties.

The protesters also revealed that yesterday's rally was just part of the build up activity for a much bigger protest on November 10 that would be participated by different sectors including drivers, vendors, among others.

Meanwhile, the Provincial Board Members will also be on the look out for retailers who abuse the implementation of the new tax law.

Sixth district Provincial Board Member Victor Maambong said that in his district he will assign a group to monitor retailers, who are unfairly jacking up prices not in consonance with the expanded value added tax.

He said he will also encourage other provincial board members to do the same.

Maambong said he has already talked with some PB members, who are amenable to his proposal.

Maambong said the suggestion was a manifestation of the PB's strong support to the move of the Department of Trade and Industry in strengthening its monitoring and enforcement efforts against these retailers, who are unreasonably raising the prices of their products.

The DTI is also set to coordinate with the Local Government Units to cancel the business permits of unscrupulous traders.

The goods to be monitored are marine products, coffee, laundry soap, detergents, candles, bread and salt. - Mitchelle P. Calipayan, Wenna A. Berondo and Ferliza C. Contratista