Palace cool on proposal to exempt water, power, oil from taxes

MANILA, Philippines - Malacañang is cool to the proposal of lawmakers from the Makabayan bloc to speed up the passage of three bills seeking to exempt water, electricity and oil from the value-added tax (VAT). Secretary Herminio Coloma Jr. of the Presidential Communications and Operations Office said: “This involves amendment of existing laws and requires a comprehensive study of far reaching implications on revenue collections and the budget deficit.”

The Makabayan bloc said Filipino consumers are already weighed down by the unabated increase in the cost of utility services and petroleum products, as well as the high prices of basic commodities.