E-VAT is approved with Finality by SC

[UCAV]

---

pag stock namo ug mga panaliton kay mag increase na tanan

Domino effect....

Higher Fuel price + Higher Electricity = Increase price for all goods....

So choose your grocery items well.... Its survival mode na

[s.n.m.p.]

Samot ka tikyaob ang corrupt Gloria regime.

The Supremem Court issued the death sentence of this evil government.

Pastilan what a good coincidence! Evrything is falling into places. Dispersal of rallies, high prices, low salary, high taxes, corrupt and cheating GMA government.

Kompletos recados na! The social hurricane is now brewing.

Ako pang Gloria mag suicide na lang sya.

[darkwing]

if GMA commits suicide I think samot ka gubot ang nasod...saunz

[s.n.m.p.]

Dili uy. i think kung mawala nang bwisit ngasi GMA mo arang arang ang Pinas.

[darkwing]

hmm grabe tingali ang power grabbing ani, take your pick, left or right hehe

[JoRed]

[img width=270 height=217]http://sunstar.com.ph/static/net/2005/10/19/article_150315_10-19-05.jpg[/img]Rapid rise of prices is seen with the lifting of the restraining order on expanded VAT. The law expands the sales tax base to include electricity, fuel and transport sectors and other previously exempt areas. Protesters are expected to increase their dissent in forms of demonstrations and devices, including these Halloween masks attacking President Gloria Macapagal-Arroyo. (AP photo)

As expected. The political appointees are just returning the favor. And this won't be the last. The Supreme CourtÂ* plays an important role in GMA's zarzuela.Â*

Shame, shame, insane!

[JoRed]

Gas, power prices to surge Nov. 1

By Riza Recio
Wednesday, 10 19, 2005


The nation is in for a painful Halloween treat from the Arroyo government with substantial increases in fuel and electricity prices likely on Nov. 1 after the Supreme Court (SC) yesterday lifted a freeze order on the expanded value added tax (e-VAT) law.

Gas prices will increase between P3.50 and P4 per liter next month placing the average price of fuel products to P40 per liter and electricity bills will rise 52 centavos per kilowatt hour, or about P100 more for bills of an average household using 200 kilowatts of electricity a month.

Oil and utility companies are still determining the actual increases as of press time.

The increases would likely exceed 10 percent, which is the e-VAT rate, because of the 70 percent cap on the input VAT that businesses can credit from e-VAT payments.

The Department of Finance (DoF) said the government is now drafting the implementing rules and regulations on the e-VAT with a target date of Nov. 1 for the law's full implementation.

Finance Secretary Marga-rito Teves said the law should take effect on Nov. 1 to allow government to generate at least P4 billion and a maximum of P5 billion before the end of the year.

A final version of the implementing rules and

regulations on the e-VAT is expected to be announced within the week to allow the law to proceed by next month.

Last Sept. 1, the court upheld the constitutionality of the statute, which expands VAT coverage to include previously exempt sectors such as power generation and petroleum products but left an earlier freeze order in place pending further challenge.

Teves said the reduction in excise tax on petroleum products to three from five percent will cushion the impact of the 10 percent sales tax on fuel.

He estimates that the total increase on fuel to be not more than 8 percent of current prices.

Teves added diesel pump prices should not increase by more than 2.5 percent while power rates should not increase by more than eight percent.

He said airline fares, which would also rise, should not cost by more than 10 percent.

The VAT on oil products was estimated to account for P30 billion of the P82 billion additional VAT colllections next year, while P6.2 billion more would be raised from the power generating sector.

Just last Saturday, oil companies raised fuel prices by an average of 50 centavos per liter and by P1 per kilogram on liquefied petroleum gas (LPG).

Prices before yesterday's e-VAT implementation were P36.50 a liter for premium gasoline and P35.50 for unleaded gas.

Diesel sold at an average of P32.50 per liter.

Arnel Ty, president of the LPG Marketers Association of the Philippines, said consumers should also expect the almost weekly price increases on LPG products until December.

Ty, however, said even if LPG price cuts materialize, these will take place next year.

He added with the recent movement of contract prices for LPG overseas, the local market should expect to see an 11-kg cylinder selling for as much as P500 each in certain areas of the country.

An 11-kg cylinder of LPG sells at between P465 and P485 at present.

The Department of Energy (DoE) said the actual impact of the e-VAT implementation will vary from one gas station to another due to competition under a deregulated market.

The DoE has recommended to the Cabinet-level Tariff and Related Matters Committee the drafting of an executive order that will reduce the five percent import duty on petroleum products to three percent, while LPG will be exempt from duty.

It said it is working with power distributors particularly the Manila Electric Co. (Meralco) for a progressive billing system on electricity consumption through reforms in the lifeline rate structure that will mean big power users will bear the brunt of price increases.

Petroleum dealers, meanwhile, said due to the 70 percent cap on input VAT, pump prices may increase by up to P6 per liter against a P2.30 to P2.50 increase without the cap.

Since July 1, the peso has devalued and the price of petroleum in the world market had increased futher aggravating the burden brought about by the 70 percent cap, the petroleum dealers said.

The dealers earlier filed a motion for reconsideration with the high court on the e-VAT law's imposition on fuel products, asserting that for dealers, majority of whom have nominal margins, the cap would be unjust and arbitrary and confiscatory.

Many will have a bleak Christmas, House Minority Leader Francis Escudero said, referring to the impact of the e-VAT on fuel and power rates.

“This is an automatic 10 percent increase on fuel, so if unleaded gasoline sells for P36 per liter now, that would go up to P39.60 before the end of the year, which is just a few centavos shy of P40,� Escudero added.

He said the price increases on fuel and power will translate to multiple layers of increases on basic commodities.

Malacañang has warned that the government is ready to quell protest rallies that it said it expects to result from the lifting by the SC yesterday of a freeze order on the expanded value added tax law, supposedly the centerpiece of President Arroyo's economic policy and efforts to end the country's chronic budget deficit.

“We're already prepared to face massive street demonstrations (by the) people who are opposed to this tax (e-VAT)... we're prepared for it,� Executive Secretary Eduardo Ermita said during a chance interview.

Ermita, at the same time, hinted that the calibrated preemptive response (CPR) or the no-permit, no-rally policy would be strictly enforced by the police against those opposing the tax measure. (See related story)

He stressed that the government seriously needs the e-VAT law to generate money, which, Ermita said, would be returned to the people in terms of social services.

The President's aide said Mrs. Arroyo was delighted that the high tribunal finally lifted a temporary restraining order (TRO) against the implementation of the e-VAT law.

The TRO was issued last July 1.

“Yes, she (the President) is very happy... of course. This is a welcome development because we can finally implement it as soon as possible. This e-VAT (law) would be a very good help, it would address our deficit problem,� Ermita pointed out, referring to the more than P200-billion budget deficit that is expected to hit the Arroyo administration this year.

Earlier, the high court ordered Malacañang to comment on the motions for reconsideration filed by the minority lawmakers and Bataan Gov. Enrique Garcia seeking to stop the implementation of the law.

Last Sept. 19, it extended the TRO after party-list Partido ng Manggagawa filed a motion for reconsideration against the expanded sales tax.

Garcia explained that the e-VAT law placed a 70 percent cap on input credits in favor of companies.

The cap, he said, would only guarantee the government three percent in taxes.

Garcia added if the SC would sustain its ruling in favor of the implementation of the law, this will “punish consumers by way of higher prices of goods vis-Ã*-vis percentage tax.â€�

He proposed that instead of the 10-percent VAT, the government should adopt a three-percent tax on gross.

The new law is seen to bring in an estimated P28 billion this year, and some P105 billion next year largely from the imposition of sales tax on oil products and electricity service. Sherwin C. Olaes, Benjamin B. Pulta, Dona Policar and Jun P. Yap/With AFP

[tolstoi]

^^bai JORED diba naa man sad mo E-VAT..REVOLUTIONARY TAX bana cya?..nga kung dili muhatag sunogun ang property..mao bana?

[JoRed]

Ang mga Pro GMA exempted kuno sa EVAT. lolz...NOT!

[tolstoi]

Decision on VAT strengthens peso

The peso strengthened on Tuesday after the Supreme Court lifted its suspension order on the expanded value-added tax (EVAT) law, but Philippine share prices were flat as the market closed hours before the Court handed down its verdict on the tax measure.

At the Philippine Dealing System, the local currency closed at 55.78 to the dollar, higher than Monday’s closing price of 55.815. It opened at 55.840, traded to a high of 55.67 and to a low of 55.870. The amount of transactions reached $347 million.

Despite the Philippine unit’s renewed strength, traders expect it to weaken until November due to the onset of the import season.

"The market has anticipated the VAT law to be implemented. However, the peso will go back to 56 soon due to the importation season," a currency dealer said. "The peso will improve in December [and] reach 55.50 by year-end."

At the Philippine Stock Exchange, share prices closed flat as investors kept to the sidelines, awaiting a Supreme Court decision on the VAT law, dealers said. The Philippine Stock Exchange composite index fell 0.13 points to 1,947.33 after trading between 1,943.91 and 1,949.82.

Volume turnover amounted to 287.01 million shares worth P498.24 million ($8.9 million).

The all-shares index gained 1.54 points to 1,180.80.

Losers outnumbered gainers 27 to 23, while 65 stocks were unchanged.

Continuing political tension exacerbated by a series of street protests seeking President Arroyo’s ouster also sidelined investors.

"Right now, there’s a lack of interest in the market. People have become more selective, and the political noise has contributed much to this," said Mark Alan Canizares of Citiseconline.com.

SM Investments Corp. was top-traded, rising P4 to P218.

However losses in First Philippine Holdings Corp. pulled down the main index as the stock fell by P2 to P42.

SM Prime Holdings Inc. ended unchanged at P7.30 while Banco de Oro Universal Bank was flat at P31.

Philippine Long Distance Telephone Co. closed steady at P1,660 after a two-day slide.

San Miguel Corp. saw its A shares, exclusive to Filipinos, remain at P65 while its B shares, available to foreigners, slipped 54 centavos to P92.

More resources for job-creation, delivery of key services

Finance Secretary Margarito B. Teves said the VAT law will be implemented starting November 1.

The tax law is projected to generate P4 billion this year, and P82 billion next year, given a 70-percent compliance rate.

Teves said the Department of Finance will push for the VAT on power and petroleum products next year, by which time the government will raise the tax rate to 12 percent from the current 10 percent.

"The lifting of the temporary restraining order will help reduce the fiscal deficit and allow more resources for job-creating infrastructure and delivery of key service," he said.

Maricel E. Burgonio with AFP