E-VAT is approved with Finality by SC

[pandisal]

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Nakapalit mi ug tambal para sa taga bukid.

Namalit pud mi ug delata nga mga pagkaon.

nakapalit mi ug radio mga computer para sa communications.

Ginagmay lang sa kay basic ra man ang mapalit sa nakita sa R-Tax.

great.. funny story!!!

[tolstoi]

Nakapalit mi ug tambal para sa taga bukid.

Namalit pud mi ug delata nga mga pagkaon.

nakapalit mi ug radio mga computer para sa communications.

Ginagmay lang sa kay basic ra man ang mapalit sa nakita sa R-Tax.

sa bukid ra diay bai?..naa man nagkinahanglan sad diri sa ciudad specially the poor families in the squatters area..selective ra diay kaayo mo sa inyo pagtabang

[redzki]

jeez.. this is too much na.. we are so poor na jud.

i was shocked when my Tita told me that gasoline prices are up to P40 na.. i thought she was just exagerrating. Me as tanga as i am.. didn't realize the increase even if I was going to the gas station almost daily.. now I know that my P100 for gas is just 2 liters+ nlng.

[JoRed]

Power


Power rates increases in November to reach P1.50/kwh, residential consumers to pay P9/kwh due to GMA's doings
Like the evil in many a fairy tale, Gloria M. Arroyo is currently the biggest villain in the lives of Filipinos. And one of the curses she has dealt us is this never-ending rise in electricity prices.

Next month, electricity consumers will have to face new series of rates increases as a result of Arroyo's lopsided economic policies and flawed priorities - private over public interest. At the minimum, a total of about P1.50/kwh increase in power rates could be experienced by electricity consumers in November due to GMA's doings. This amount is comprised of the following: imposition of VAT on power (P0.60/kwh), removal of interclass cross subsidy as mandated by EPIRA (P0.21/kwh for residential customers of Meralco), and government's continuous protection to the independent power producers from market risks such as fuel price increases wherein Napocor bears the impact of this and passes this on to the consumers through GRAM (P0.45/kwh) and ICERA (P0.25/kwh for Luzon and P0.0138 for Mindanao) due to exchange rate guarantees in the IPP contracts.

VAT on Power - Residential consumers to be hit most ( 50-70 centavos)

The imposition of Expanded Value Added Tax (EVAT) on the generation, distribution, and transmission of power will result in an average increase of 50 to 70 centavos per kilowatthour (kwh). If VAT will be implemented beginning November, this could bring power rates to P8.20/kwh. Households in Meralco franchise areas consuming 201 to 300 kwh - monthly electricity consumption of ordinary households - are already paying about P7.60/kwh these days. Almost twenty percent of their income goes to payment of electricity.

Revenues from EVAT will only go to servicing debts, a number of which were due to onerous and illegitimate transactions with the private sector such as the Napocor contracts with the IPPs.

Even the minutes of Senate Energy Committee's hearing last 11 October 2005 show that residential consumers will be hit most by VAT on power. The industrial and commercial consumers can pass on the cost to the buyers of their products and services. Even then, the business community is also complaining against high power rates.

Interclass Cross Subsidy Removal as mandated by EPIRA (42-centavos)

Early this October, ERC issued an order whereby residential consumers will have to pay additional 42-centavos per kwh beginning November due to the removal of interclass subsidy, as provided for by the power privatization law. Those consuming 101 to 300 kwh will see a rise in their monthly electric bills by P15.15 to P45. The amount of increase may be considered negligible by others, but for those whose every centavo count, a P15-increase a month could be equivalent to two instant noodles while two kilos of rice could be sacrificed if the P45- additional monthly electricity charge will be collected.

Last 26 October, however, ERC issued an order to stagger the collection of 42-centavos. Only 50% of which will be collected in November, while the remaining 50% will be collected at a later period.

Continuing oil price increases - IPP risks absorbed by the consumers through the contracts

Another 45-centavo average increase will be experienced by electricity consumers especially those whose entire power supply come from Napocor, if the Energy Regulatory Commission (ERC) approves the 5th petition of Napocor for its recovery of fuel and purchased power costs arising from contracts with IPPs through the Generation Rate Adjustment Mechanism (GRAM). The Application was filed on September 8, and from that date ERC is given 75 days to make a decision - thus ERC is expected to decide on it on or before November 23.

Consumers continue to suffer from the onerous terms of these contracts with the IPPs. The fuel cost guarantee that protects IPPs from the impact of fuel prices increases is a burden to the consumers. The profitability of the IPP is unaffected by increases in the cost of fuel. This kind of guarantee does not appear in provisions of IPP contracts in other countries. In its Philippine power sector study the World Bank notes that "[a] particular feature of these [IPP] ontracts, not used in other countries, is that the fuel is provided and paid by NPC (at established efficiency rates set in each contract). The assumption of this risk by NPC may partially explain why so many contracts have been signed and are in operation, many times larger than in any other country."[1][1]

Despite the findings of its own review committee of onerous and questionable provisions, the Arroyo Administration has refused to take steps to change these provisions in the IPP contracts. The earlier claims of US$1 billion in savings from the so-called renegotiations has not been felt, the amount is also a drop in the bucket compared to the IPPs profits. So-called renegotiations have not led to changes in the onerous provisions.

FDC no longer expects this Administration to right the wrongs it has done. No less than the removal of the President and a radical change in government is needed to free us from the curses of Arroyo's policies.

[s.n.m.p.]

Increase na tanan! Thanks to Gloria "KAWATAN" Arroyo.

[kyuusai]

unpredictable gihapon ang outcome aning e-vat no? will there be changes in our economy? saun nalang...kamang ta ani..

[JoRed]

Update! Nahadlok si Manang Glo mao nang ningbalitok.Â*

Â* Gloria fears mass revolt, seeks delay of 12% e-VAT (from the Daily Tribune)

By Ayen Infante
Wednesday, 11 09, 2005


Fears of a mass revolt throwing her out of Malacañang has sent President Arroyo scrambling for support from the business sector as she sought a six-month delay at the very least in the full implementation of the expanded value-added tax (e-VAT) law that calls for the increase in the current 10 percent VAT to 12 percent by the middle of January next year.

Moreover, during the six- month period, part of the expected revenue loss from the delay of the e-VAT implementation will be covered by the income tax holidays granted to power plants that will be ending their contracts early next year, with the deferment in the capital expenditures over a period of five years. This is, however, still iffy.

Palace sources yesterday intimated to the Tribune that all Mrs. Arroyo is focused on these days is her political survival and that she is awash with fears of being overthrown by the people.

The economy is expected to deteriorate some more by next year and exit plans are reportedly being discussed, given different political and economic scenarios, among which is an Argentina-type scenario where government after government was toppled.


Shortly after the high court upheld the constitutionality of the VAT, after a long delay, Mrs. Arroyo's allies in Congress, who had pressed for the passage of the e-VAT claiming this would be the solution to the fiscal crisis, suddenly pushed the suspension of the law, saying this would create more economic hardships on the people, as the oil prices and power rates would soar with an additional 10-12 percent tax.

International creditors and foreign ratings firms, however, have already warned the Arroyo government no upgrades may be forthcoming until after they observe how the eVat is to be implemented.

Her latest move to delay the second phase of the eVAT merely cements the widespread perception that she had indeed coopted the Supreme Court into delaying the ruling on the eVAT earlier on, as her government then was on the verge of collapse, with her Cabinet and other senior officials resigning en masse and later demanding her resignation.

Businessman Raul T. Concepcion yesterday said he was tasked by Malacañang to ask support from Congress over the deferment of the VAT increase to 12 percent scheduled under the e-VAT law by January 15 next year.

Credit rating firms have predicated a review on the country's sovereign outlook on the full implementation of the e-VAT law but Mrs. Arroyo, pressured by a political crisis due to allegations that she stole the presidency in the May 2004 elections, apparently is wary of the heightening of unrest if the sales tax is raised next year.

Concepcion, who is also the chairman of the Consumer & Oil Price Watch (COPW), disclosed in a news conference yesterday that he is being pushed by the President's economic managers to work closely with Congress on the possible delay in the full implementation of the e-VAT law.

Mrs. Arroyo has maintained that her administration is for the full implementation of reform measures.

According to Concepcion, the Arroyo administration is becoming wary over the adverse effect of the eVAT law on the prices of all goods and services if the VAT is increased again so soon.

Congress gave the President the power to increase, on her own, the e-VT to 12 percent in January.

Although e-VAT oppositors went to the high court to question the constitutionality of an executive being vested with the power to legislate a tax law, the high court upheld the e-Vat law in toto.

Concepcion said he was personally chosen by Mrs. Arroyo to act as adviser on consumer matters, and was tasked by the country's economic managers to work on the possible six months delay in the implementation of the eVAT law by working closely with Congress.

“I will be meeting with Congress and see how we can legally delay the implementation (eVAT) because of the wrong timing. Everything will go up but once you amend, you don't know what will happen�, Concepcion explained.

During the six months period, part of the expected revenue loss from the delay of the eVAT implementation reportedly will be covered by the income tax holidays granted to power plants which will be ending their contracts early next year, and the deferment in the capital expenditures over a period of five years.

The President has also backtracked on her initiative on a congressional legislated wage increase, as the business sector representatives the other day were said to have read her the riot act during a closed-door meeting.

Shortly after, her aides claimed that she did not backtrack on her proposed legislative wage increase and that all she really wanted was for Congress to come up with a law which would ensure that all workers are paid the right wages.

Her proposal for a legislated wage increase by Congress was seen as yet another move by Mrs. Arroyo to douse the anger of the public over the deteriorating economic conditions and high prices of goods brought about by the imposition of eVAT.

Before its revised effectivity after July 1 of next year, Concecion said the Regional Wage Board, the business community and the government should have completed their plan on how to address wage increase.

On the plan to further reduce the import duties on petroleum products from three to one percent, Concepcion said he has advised economic managers not to push through with the plan since prices of crude in the world market are already on the way down.

Price of crude in the world market in August was at $74 per barrel down to $58.50 per barrel in November, and expects no further increases before the year ends.

[overseer]

unpredictable gihapon ang outcome aning e-vat no? will there be changes in our economy? saun nalang...kamang ta ani..

Yup very unpredictable. Especially because the changes in the economy, especially the good ones, won't be seen immediately all at once.

and they always win because the truth is on their side...lplz!

If they ALWAYS win because the truth is on their side, it would be the same as saying that THEY'RE ALWAYS TELLING THE TRUTH right? Now, do you see why people find that funny? LOL

[JoRed]

[img width=362 height=267]http://www.malaya.com.ph/nov12/images/index.jpg[/img]

Merry CRISISmas...

[PissKhanXXX]

JoRed

tell me... what does a kid know about E-VAT? what a shame. kids, not knowing the real deal, are included into the dirty world of politics.

why do you even care about E-VAT when you don't pay taxes to the government? as far as you made us understand, you are supposed to be paying the 'cheaper' revolutionary taxes.