12% VAT on LPG, Enough to Buy a Meal for a Family

Based on the computations of the Center for Women Resources (CWR), the 12-percent Value-Added Tax (VAT) on Liquefied Petroleum Gas (LPG) is already enough to buy one meal for a family.

BY ALDWIN QUITASOL
Northern Dispatch
Posted by Bulatlat

Based on the computations of the Center for Women Resources (CWR), the 12-percent Value-Added Tax (VAT) on Liquefied Petroleum Gas (LPG) is already enough to buy one meal for a family.

The original price of an 11-kilogram LPG tank is P468.16 ($9.69 at the current exchange rate of $1:P48.31). It is being sold for P532.00 ($11.01) because of the 12-percent VAT, which amounts to P63.84 ($1.32).

CWR said that with this amount, a family can already buy a kilo of rice, as well as sardines and coffee.

CWR added that a mother can save much if the VAT is scrapped. According to the price chart of CWR which was released as part of their regular Price Monitor, a family’s expenses for the ten basic commodities will be lessened by close to a hundred pesos if the VAT is scrapped.

For instance, the prices of ten basic commodities are: P42.13 ($0.87) for a kilo of rice, supposed to be P37.07 ($0.77) without VAT, P11.85 ($0.24) for a can of sardines, supposed to be P10.43 ($0.22), noodles for P6.27 ($0.13) instead of P5.52 ($0.11), refined sugar for P36.08 ($0.75) instead of P31.75 ($0.66), 80 grams of powdered milk for P22.33 ($0.46) instead of P19.65 ($0.41), 25 ml coffee for P15.91 ($0.31) instead of 14.00 ($0.29), cooking oil for P20.00 ($0.41) instead of P17.60 ($0.36), a laundry bar for P20.20 ($0.42) instead of P17.78 ($0.37), a kilo of galunggong (mackerel scad) for P95.00 ($1.97) instead of P83.60 ($1.73), and the LPG for P532.00 instead of P468.16.

The total for the said ten basic commodities is P801.77 ($16.60); without the 12-percent VAT, it only amounted to P705.56 ($14.60), according to the chart.

The CWR said that prices continue to rise creating more difficulties for poor households who are already suffering from the impact of the economic crisis. CWR added that scrapping the VAT would be of great help to poor families, especially to mothers who are the first to worry about the effects of rising prices on the family’s budget. (Northern Dispatch / Posted by (Bulatlat.com))