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Posts Tagged ‘oil’

(UPDATE 5) Oil firms to cut prices by P0.50-P1/ liter Friday

Posted by Abi Kwok on September 18, 2008

Transport group dissastisfied

By Abigail Kwok, Abigail L. Ho, Philippine Daily Inquirer
First Posted 08:40:00 09/18/2008

MANILA, Philippines — Good news for motorists this weekend as both major and independent oil players have announced another round of oil price rollbacks as a result of the continuous decline in world crude prices.

Major oil players Pilipinas Shell, Petron Corporation, and Chevron Philippines (formerly Caltex) have announced a P1 per liter cutback on its diesel, kerosene, and gasoline products effective 12:01 a.m. Friday.

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Thursday protests to push for wage hike, scrapping of VAT

Posted by Abi Kwok on August 26, 2008

Could be prelude to Sept transport strike–KMU

By Abigail Kwok
First Posted 14:52:00 08/26/2008

MANILA, Philippines — Thousands of left-wing activists are mounting protest actions across Metro Manila on Thursday, August 28, to continue pressing government for a legislated P125-across-the-board wage increase and scrap the value added tax (VAT) on oil and electricity.

The protest, organized by the Kilusang Mayo Uno (KMU, May First Movement), will see simultaneous protests from 3 to 7 p.m. at the Welcome Rotonda, Araneta Avenue, Philcoa, Litex-Commonwealth, Stop ‘N Shop, and Novaliches-Bayan in Quezon City; along Sta. Mesa, Pedro Gil and Taft Avenue in Manila; at Pinagbuhatan in Pasig City; Marikina Sports Complex, in In Marikina City, Cainta-Junction, Marulas Market in Valenzuela; and in Alabang and Las Piñas.

KMU chairman Elmer Labog said the Thursday protests could be the prelude to a nationwide transport strike in September if government does not heed their demands.

“For every second, minute, and hour that the prices of petroleum products are not rolled back, the oil cartel earns a huge profit and the Arroyo government a windfall through taxes,” Labog said. “For our government not to implement a corresponding substantial rollback in the light of current large rollback of the world oil price is tantamount to plunder against the people. The people need a reasonable, timely and substantial rollback, not tiny and portioned rollbacks.”

He also claimed that at the rate world oil prices are declining, the prices of oil in the local market should be at around P44 per liter.

Labog said government should stop pushing Charter change and should push, instead, for the immediate legislation of the P125 wage increase.

“The prices of basic commodities are sky high while the wages of the majority of the Filipino people are still inhumanely low,” he said.

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Finance, BIR favor VAT removal on oil, power with conditions

Posted by Abi Kwok on August 12, 2008

This is a very, VERY complicated topic o_O


By Abigail Kwok
First Posted 13:21:00 08/12/2008

MANILA, Philippines — The Department of Finance (DoF) and Bureau of Internal Revenue (BIR) are in favor of removing the Value Added Tax (VAT) on oil, provided that the excise tax will be able to produce the same revenues as VAT can provide, officials told the House of Representatives Tuesday.

During the continuation of the hearing by the committee on ways and means on the removal of VAT on oil and electricity, DoF undersecretary Gil Beltran said the excise tax should be able to provide the expected P18.6 billion in revenues from July to December of this year that VAT would provide, based on forecasts by the agency.

“If we break the VAT chain, we will lose all the revenues…if we really have to replace the VAT with an excise tax, we suggest that the excess tax will maintain the revenues of tax,” he said.

Several bills have been filed by lawmakers like House Bill 4268, “Shifting the form of taxation on crude oil and petroleum products from VAT to excise tax,” and House Bills 3440 and 3511, exempting electricity and oil from VAT.

Under Section 148 of the National Internal Revenue Code of 1997, the excise tax on petroleum products, fixed tax rates should be collected by the government on corresponding petroleum products.

For lubricating oils, an excise tax of P4.50 per liter should be collected; P0.05 for processed gas; P3.50 for petrolatum and waxes; P0.05 for denatured natural oil, leaded gasoline for P5.35; and unleaded gasoline with P4.35.

Beltran said that if VAT would be repealed, the government would be losing an estimated P24 billion of revenues from July to December and social service programs for the poor would be sacrificed.

“VAT is a progressive tax. It will benefit lower income groups, while higher income groups who purchase luxury items will pay higher taxes. It is better to collect the tax and allocate the proceeds to direct transfers to the poor,” he added.

But Gabriela partylist Representative Liza Maza countered that although revenues have increased because of VAT, the funding for social welfare programs have decreased, particularly on education, housing, health, and hunger mitigation.

“I cannot understand why there is an increasing VAT collection but decreasing budget for social services. Where did the other VAT collections go?” she said.

Meanwhile, Beltran also disclosed that for electricity, the government was able to collect more than P1 billion of revenues from both lifeline and non-lifeline consumers.

But Consumer and Oil Price Watch (COPW) chief Raul Concepcion said he was not in favor of non-lifeline consumers being subsidized by lifeline consumers.

Lifeline consumers are those consuming less than 100 kWh of electricity per month.

“Non-lifeline consumers pay for both the VAT and discount of lifeline consumers,” he said.

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