GMA stays

The House of Representatives in plenary session voted 158-51 in favor of the justice committee’s recommendation junking the impeachment case against President Gloria Macapagal-Arroyo. The result favoring the administration was a foregone conclusion, when on the eve of the plenary session the opposition was not able to muster 79 signatures to automatically bring the case to the Senate floor for trial.

The opposition, however, is not giving up hope that they can still make GMA resign as early as possible. After failing miserably in the impeachment case against the president, they are training their guns in another direction. This time, on "people power." No less than former President Corazon Aquino and the widow of the late Fernando Poe Jr., Susan Roces, marched arm in arm to Congress. What impact or how much impact they contributed, or will contribute to the cause of the opposition, will still have to be seen.

But judging from the size of the crowd that marched to Congress, their presence did not dramatically make any significance; the crowd was sparse, except for the red flag-waving bunch that dominated the scene.

Certainly Impeachment Day circa September 2005 was a far cry from the January 2001 trial of former President Joseph Estrada that mesmerized the nation and the world, and ended with the Grand Escape – or ignominious retreat — of the movie actor from Malacanang.

What was most noticeable in Monday and Tuesday’s main event was the intensity of convictions between the legislators who approved and disapproved of the justice committee’s recommendation. The speeches of some of the protagonists were touching; some were dramatically vitriolic. Some attacked the President and her failings; others spoke of the necessity of making her stay in power.

The event was obviously a triumph for Speaker Joe de Venecia, who was able to stay calm and collected as his "children" squabbled over why GMA should stay, or not stay.

With a new era before GMA, the Speaker, everyone, and us will have to work hard to heal the wounds caused by division.

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The Supreme Court has spoken: the Value-Added Tax Reform Law (R.A. 9337) is constitutional, and even if the oppositors still have a few days to ask the High Tribunal for a reconsideration, it is certain that the 10 percent VAT will be slapped on certain additional commodities. I sense a feeling of hopelessness among my peers, neighbors, and everyone I have conversations with on escalating prices and the increasingly worsening bad times, and it doesn’t feel good, the feeling that we have to tighten our belts even tighter for the coming harder times.

At the Bulung Pulungan sa Westin Philippine Plaza the other day, three government undersecretaries (Noel Bonoan of the Department of Finance, Melinda L. Ocampo, Department of Energy and Zenaida C. Maglaya of the Department of Trade and Industry) explained that mitigating measures are being implemented to allay fears of consumers being overwhelmed by additional taxes.

The VAT law is not new, it having been imposed on certain goods and services such as petroleum products, power and electric cooperatives, services rendered by doctors and lawyers, domestic carriage of passengers by air and sea, non-food agricultural products and works of art, literary works, and musical compositions. The taxes on these goods and services are meant to increase government revenues, but since the government has a monstrous budget deficit, one way out is to impose a Reformed VAT law (R-VAT), and by January next year, of an additional 2 percent to the present 10 percent VAT impositions.

The 12 percent VAT is a necessity, Bonoan said, so the government can raise additional revenues to provide basic public services like education, health, etc. for the growing population and to immediately address the country’s debt that has accumulated through the years. He explained that in 2004, for every peso earned by the government, 86 centavos go to debt servicing — 37 centavos to interest payments, and 49 centavos to principal payments. And for every peso spent by the government, 11 centavos are spent on infrastructure such as roads, bridges, schools, buildings and other public needs.

If the VAT rate is increased from 10 percent to 12 percent, Bonoan said the government could raise as much as P35.12 billion to pay our indebtedness. But with a reformed VAT and the repeal of VAT exemptions, we can raise P82.57 billion, assuming a 70 percent tax collection efficiency.

The R-VAT is not anti-poor, Bonoan explained. In fact it recognizes the needs of the poor and exempts basic commodities and socially sensitive products from VAT. Among the VAT-exempt commodities are: agricultural and marine products in their original state such as vegetables, meat, fish, fruits, eggs and rice; lease of residential houses not exceeding P10,000 monthly; education services rendered by both public and private educational institutions; books, newspapers and magazines, and sales of persons and establishments earning not more than P1.5 annually, which could include sari-sari stores, carinderias and street vendors.

Usec Maglaya, who takes care of consumer welfare and the trade regulation group, said some salving words to the effect that even if, say, the cost of gasoline goes up, the prices of certain commodities, for example, flour and canned goods, are going on. She mentioned that despite an increased VAT, dealers and vendors would not want to raise the prices of their products, as these will drive away customers. Just an increase of a few centavos on a bundle of string beans, I think, will make the housewife think of skipping the vegetable altogether.

Maglaya also spoke of looking at possible sources of energy, for example, ethanol, to help motorists cut down on transport and travel costs.

Consumers, feeling the pinch of high prices and the diminishing value of their peso, will look for ways and means to ride the tide and keep body and soul together.

Well and good, said one of the Bulong Pulungan members. It’s okay if we have to have price increases. But how sure are we that the taxes collected from the EVAT will not go to the wrong pocket? You and I are also asking that question.

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All who have been students of Notre Dame University (Cotabato City), whether graduates or not, but who are now based in Metro Manila and suburbs are invited to attend a Fellowship Day scheduled for Saturday, September 10, at the Notre Dame of Greater Manila, Mother Ignacia Ave., corner 9th street, Grace Park, Caloocan City. According to John Macasio, current president of the Notre Dame University Alumni Association-Metro Manila says this year’s theme will be, "Hello Notre!… Let us celebrate memories with Notre Dame." It will be a whole day agape affair beginning with registration at 9 a.m. Stories/experience sharing and raffle prizes will be two of the day’s activities. Please confirm attendance with Susan Cocal Mendiola, 3648060; 0920-4727345, or Rebecca Bernales, tels. 8314756 and 0917-9961516.

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