President Gloria Macapagal-Arroyo in
Migrante poster as vampire bat "VATGirl" (left) as thousands rally against
the VAT increase bill (right)
Photos by Alexander Martin Remollino
The Philippine Senate
remained divided last week whether to support President Macapagal-Arroyo
new tax measures shortly after a big anti-VAT multisectoral rally was held
near the upper chamber’s building.
But the presidential
palace itself raised the alarm bells anew with the President herself
insisting that the country faces an Argentina-type crisis in two years if
the planned 12 percent VAT increase is thumbed down by the Senate. The new
VAT and other tax measures are expected to raise some P80 billion revenues
enough, so Macapagal-Arroyo said, to stave off a fiscal crisis.
Sen. Ralph Recto, who
is with the administration Lakas-Christian Muslim Democrats, the Senate
Committee on Ways and Means which he chairs appeared not too keen on
approving a VAT rate increase.
“The 10 percent to 12
percent (increase) would be more difficult to do,” Recto told reporters in
an interview Feb. 17. “We are looking at a single rate, possibly 10
percent but expand the base.
“More or less, we
will come up with a single rate, and chances are that it will be 10
percent, and lift exemptions.”
Sen. Joker Arroyo,
vice-chairman of the Ways and Means Committee, was speaking about
political benefits that the Macapagal-Arroyo administration could gain
from retaining the 10-percent VAT rate. “It is not that we are dismissing
the whole thing,” he said. “We cannot dismiss the reaction of the public
so we are trying to balance the whole thing.”
The two senators said
all these a day after the multi-sectoral anti-VAT hike rally at the Manila
Film Center.
Some volts
It was a rally that
appeared to have sent some volts through the Senate. The rally in Manila
was replicated in several other cities throughout the country.
“It’s a new political
development,” activist Fr. Joe Dizon described the rally that drew about
7,000 people, based on estimates by Bagong Alyansang Makabayan (Bayan or
New Patriotic Alliance) secretary-general Renato Reyes, Jr.
Indeed it was. It was
one of those few instances when groups and personalities who would not
normally be seen together were in a single protest action.
The familiar faces
from Bayan were of course there, but with them was a sizeable contingent
from the Bangon Pilipinas (Philippines Arise) National Renewal Movement
led by evangelist and former presidential candidate Eddie Villanueva.
Bangon Pilipinas’
yellow shirts mixed with the multi-colored flags from Bayan and its
affiliated organizations like the Kilusang Mayo Uno (May First Movement),
Kilusang Magbubukid ng Pilipinas (KMP or Philippine Peasant Movement),
Health Alliance for Democracy (HEAD), Migrante International, Sining
Bugkos, and GABRIELA, as well as the white flags from the progressive
party-list groups Bayan Muna (People First), Anakpawis (Toiling Masses),
and Gabriela Women’s Party (GWP). Bangon Pilipinas members who would break
into tears at Villanueva’s invocations jived well with Bayan activists who
punctuated the speeches with chants enough to send chill down Malacañang’s
spine.
Also in the rally
were the People’s Movement Against Poverty (PMAP), the People’s Congress
for Authentic Democracy (PCAD), Sanlakas, Partido ng Manggagawa (PM or
Workers Party), and Bukluran ng Manggagawang Pilipino (BMP or Unity of
Filipino Workers). Congressmen and senators from the major opposition
parties were also there, among them Francis Escudero, Teofisto Guingona
III, Rodolfo Plaza, Juan Ponce Enrile, Jamby Madrigal, and the
mother-and-son tandem Loi and Jinggoy Estrada.
Ungodliness
Villanueva talked not
just about the need for godliness, but also about what he described as the
ungodliness of an administration insisting on imposing an added tax burden
on the people without fixing the roots of its failure to raise funds. He
lambasted Malacañang for failing to curb corruption and inefficiency.
GWP Rep. Liza Maza
talked of how adversely a VAT hike would affect women and the rest of the
country’s consumer population. KMU’s Elmer Labog and KMP’s Willy Marbella,
meanwhile, discussed how a VAT hike would harm workers and peasants.
A
recent IBON study showed that the average daily cost of living for a
family of six – the average Filipino family – amounts to P492.19. IBON
used data from the National Statistics Office (NSO) for its study.
Conversely, the daily minimum wage amounts to only P202.59 on the average
nationwide - P289.60 short of the
national average for the daily cost of living for a family of six – based
on data from the National Wages and Productivity Commission (NWPC).
Meanwhile, both House
Minority Leader Escudero and Bayan Muna Rep. Teddy Casiño assailed the
Macapagal-Arroyo administration for bowing to what they called the
dictates of the International Monetary Fund (IMF) and the World Bank (WB).
Escudero described the current Congress as one in which “The winning votes
are always those of the IMF and the rich.”
“Ibagsak”
Carmen Deunida of
Anakpawis and Dr. Darby Santiago of HEAD would hit it big with the crowd
even with their “Ibagsak si Gloria” (Down with Gloria Macapagal-Arroyo)
cries.
Deunida was as always
in her element, endearing herself even to the obvious moderates in the
crowd despite her famous insults and invectives directed at the present
Malacañang occupant. She also spoke of “social unrest” that a VAT hike may
unleash. “The Senate mobilization today is an indication of the unrest to
come if the added VAT legislation pushes through and the economic effects
of its implementation start to hit sectors, ranging from lower
middle-class consumers to workers, peasants, urban poor, and fisher folk,”
she said.
Despite the heat that
day the crowd was unfazed. The rally would end, to the tune of the old
familiar “Bayan Ko” (My Country) by Jose Corazon de Jesus and
Constancio de Guzman, at early evening with the crowd as thick as when it
started – holding candles while those on stage were carrying torches, as
symbols of unity.
The Feb. 16 protest
is only the first in a series.
The organizers of the
Feb. 16 protest are targeting a bigger rally on Feb. 24, this time along
Ayala Avenue, the country’s business center. A third big one is scheduled
for March 8.
A day before the Feb.
16 rally at the Manila Film Center, just a few steps away from the Senate
where the bill is now being deliberated upon by the Committee of Ways and
Means, Press Secretary Ignacio Bunye was quoted in various news reports as
saying that not even a people-power uprising would stop Malacañang from
pushing for a VAT hike. The day after the rally, President Gloria
Macapagal-Arroyo was telling the people of the need to raise funds to
remedy the government’s fiscal woes.
But whether
Malacañang is sure of getting its wish is another matter.
Presently covered by
the VAT are: food products (processed meat, canned fish, coconut and
vegetable oil, bakery products, noodles, milk, dairy products, coffee,
sugar); clothing, footwear, tannery and leather products; drugs and
medicine, furniture, pulp and paper; glass and glass products; cement,
steel, iron, wood and most construction materials; electrical lamps and
equipment; machinery and equipment both for manufacturing and agriculture;
wholesale trade and retail trade; pawnshops; restaurants, cafes and other
eating and drinking places; employment and recruitment agencies; motion
picture production; hotels and motels; and telecommunications (including
landline, post-paid and pre-paid mobile phone services).
Last December, the
results of a survey by the socio-economic think tank IBON Foundation
showed 74.11 percent of the respondents opposed to a VAT increase.
Bulatlat
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