Binay credits GMA for VAT implementation

MANILA, Philippines - In a rare expression of appreciation to former President and now Pampanga Rep. Gloria Macapagal-Arroyo, Vice President Jejomar Binay credited her yesterday for the implementation of the Value Added Tax (VAT).

Binay, who met with officials and members of different transport groups in his office at the Coconut Palace in the CCP complex in Pasay City, said the country was saved from imminent economic crisis because of the Arroyo administration’s implementation of the 12 percent VAT.

“Now I realize, in fairness to Mrs. Arroyo, had there been no VAT our economy will be worse,’” he said.

Binay had been consistent in attacking his then vice presidential rival, former senator Manuel Roxas II, in the 2010 elections for his role in the passage of VAT by Congress.

The Vice President said that Arroyo had many economic policies that were unpopular “but right.”

Binay said any country, even the powerful ones like the United States, could not easily recover from economic crisis.

“As the saying goes, when the US starts coughing, we get a cold. That is how dependent we are on America. Addressing economic crisis cannot be done overnight. So, we have to see the VAT first,” he said.

‘Increases not fair’

During their talk with Binay, Pasang Masda president Obet Martin said the increases in oil prices being implemented by the three big oil companies – Shell, Petron and Caltex – are not fair.

Martin said the 12 percent Expanded Value Added Tax (EVAT) is an additional burden to the transport sector.

Meanwhile, the Metro Pacific Tollways Corp. (MPTC) clarified yesterday that it would not profit from the 12 percent VAT set for implementation by the Toll Regulatory Board starting Oct. 1.

Company officials said the tax would go directly to the government and MPTC’s Traffic Management Corp. (TMC) that manages the 83-kilometer North Luzon Expressway (NLEX).

The MPTC would only serve as a “tax collector,” and the VAT “just pass through for us and we won’t earn anything from it,” said Ramoncito Fernandez, president and chief executive officer of both of MPTC and TMC.

Fernandez was interviewed by The STAR on the sidelines of the 20th North Luzon Area Business Conference (NLABC) held at St. Agatha Resort and Country Club here yesterday.

 He said the MPTC and TMC will be ready to collect the 12 percent VAT from motorists passing NLEX and the 94-kilometer Subic-Clark-Tarlac Expressway (SCTEX).

 Fernandez added that the TRB has yet to furnish them a copy of the toll matrix.

“Presently, TRB is preparing the toll matrix, and we hope that they will give it to us at least three weeks before Oct. 1 so that we can properly inform the public about it,” he said.

Fernandez, however, said they still don’t know the exact amount they have to collect on top of the current toll rate at the NLEX and the SCTEX.

The TRB is still computing the increase in toll rates, he added.

But he hinted that the current P72 toll fee from Tabang toll plaza to Balintawak interchange may reach P81 instead of P80.64 toll with VAT. – With Dino Balabo