Demands for the scrapping of the value-added tax (VAT) are growing as an increasing number of people are weighed down by the effects of what is thus far an unprecedented economic crisis. But the Arroyo administration has so far refused to heed this demand, instead offering token measures like the P500 one-time subsidy for lifeline power consumers. This is because the Arroyo administration wishes to remain in the good graces of the International Monetary Fund and the World Bank (IMF-WB), which imposed the VAT as part of its structural adjustment program for “developing” countries. The Arroyo administration would rather look good in the eyes of multilateral institutions than attend to the welfare of the Filipino people.

BY FLON FAURILLO
Bulatlat
Vol. VIII, No. 23, July 13-19, 2008