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NEWS RELEASE
16 July 2008
FOR REFERENCE: REP. LIZA MAZA 0920-9134540
Jang Monte (Public Information Officer) 0917-4049119
OVERPRICED, KICKBACK-RIDDEN ODA PROJECTS' PAYMENTS NOT PROJECTS FOR
THE POOR, BEHIND VAT COLLECTIONS
Gabriela Women's Party Rep. Liza Largoza Maza today said that it is
the government's overpriced ODA obligations and not the poor that is
the reason behind President Arroyo's mulish stance against the
scrapping of the 12% Value Added Tax.
"A huge chunk of the government's spending still goes to foreign debt
payments. And for the past seven years, ODA availments have increased
the debt service burden, " said Maza citing IBON studies indicating
that around 40% of outstanding foreign debt may be attributed to ODA
loans.
"The disadvantageous and kickback- ridden Northrail project alone
compels the government to pay $400,000 in monthly interests alone. In
addition to this we are also paying for several other overpriced ODA
projects such as the P3.6B Bohol Irrigation Project Phase II, the
$465.5 M Cyber Education Project among several others," said Maza.
DEBATE
"Sa totoo lang, ang paggamit sa mahihirap na dahilan para sa patuloy
na koleksyon ng VAT ay katulad ng pagprito sa mga mahihirap sa
sariling mantika. This government take the poor Filipinos for fools if
it thinks insulting subsidies are enough to make the people believe
that we are enjoying the fruits of the VAT. We doubt if she can debate
with and defend her VAT collections to the impoverished mothers lining
up for cheap NFA rice, and insulting electricity subsidies," said Maza.
The Gabriela solon also belied Arroyo's claims and insisted that the
government can very well still provide for projects for the poor sans
the VAT collections. "Government claims it will lose Php73.1 Billion
should the government cease VAT collections. But this can easily be
resolved by addressing graft and corruption in tax collections. "
Maza cited statistics from the IBON Foundation and the National Tax
Research Center which estimate that graft and corruption in revenue
collections have cost government Php82 Billion in uncollected
corporate taxes in 2006 and an average of Php57 Billion annually in
uncollected VAT.
Gabriela Representatives Maza and Luz Ilagan have filed HB 3458
removing the 12% VAT on oil products and HB 3433 to repeal the RVAT.
They are also supporting several measures in Congress that seek to
amend the RVAT approved in 2005.
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