Davao drivers and operators demand the scrapping of VAT on oil

Oct. 21, 2008

Trinidad and Doco were among the drivers, tricycle and jeepney operators whose groups were calling for the scrapping of the expanded value added tax and a rollback of oil prices in a recent transport summit here.

Edil Gonzaga, secretary general of Transmision, said the summit, which is the first of its kind, seeks to unite drivers and operators on the issue of the oil price hike. They tackled their pressing concerns, among them, the removal of VAT, the calibrated PUJ phase-out, opening of franchise for tricycles, traffic-related violations, green plates, out of line phenomenon or colurom, and whether or not to hold a transport strike.

Participants unanimously called for the removal of the VAT on oil.

“Despite recent rollback in oil prices, operators and drivers should not waver in calling for the scrapping of 12 percent VAT,” Gonzaga said. “Drivers must not be contented with the rollbacks since oil companiesCaltex Philippines, Petron and Pilipinas Shellhave not been transparent in their mysterious pricing schemes. ”

Transmision has been campaigning for the removal of 12 percent VAT on oil to give immediate relief to consumers in the midst of rising joblessness, falling incomes and the worsening economic outlook amidst the global economic slowdown.

Trinidal said the government should heed their call on scrapping the 12 percent VAT on oil and the Oil Deregulation Law. Meanwhile, Doco said the removal of VAT on oil is important and is very beneficial for drivers like him whose income would surely increase. He added the control of our country’s oil industry must be given back to the government.

Gonzaga said the permanent solution to high oil prices is to nationalize the local oil industry. “This industry is vital to the country’s economic development, hence, it should not remain in the hands of profit-driven oil cartel,” he said.

Doco enjoined the drivers to unite. He said he will support a transport strike for the scrapping of the VAT on oil.

Trinidal urged drivers to support future strikes. “The transport strike is the highest form of mobilization that we must support,” he said. (Marilou Aguirre-Tuburan/davaotoday.com)

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