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Solon to govt: Cut oil taxes to avert crisis

An administration congressman said Tuesday the government should heed suggestions to suspend taxes on oil products because doing so could prevent the people from "going wild" as they continue to suffer from increasing prices of basic goods.

"We haven’t seen this rice problem in the world. We haven’t seen this power rates in the world. We haven’t seen this [soaring] oil prices. We have to look for ways and means to help the public," Bacolod City Rep. Monico Puentevella, vice-chairman of the House Committee on Energy, told an ANC interview.

He added: "I think the VAT (value-added tax), it has helped the country a lot. We went into the right direction. It has helped us float our economy and hand on while others are going down in other ASEAN countries. We need to have some new ways to change the course, [if] not, the public might just go wild."

Puentevella said he will ask President Arroyo’s son, Pampanga Rep. Juan Miguel Arroyo, to call for an urgent energy committee to review pending proposals to review the Expanded Value-Added Tax on oil and the Electric Power Industry Reform Act (EPIRA) of 2001, which the congressman both opposed.

"I take the stand that we have to study this and take this up to the committee,” Puentevella said, adding that he would ask Rep. Arroyo’s son to consider calling an immediate hearing on Wednesday.

Mrs. Arroyo should listen to House

Puentevella said he is confident that congressmen can "enlighten" Mrs. Arroyo and convince her to take extra measures, particularly withdrawing VAT on oil products.

"Knowing the President, if Congress takes a stand and enlightens her with some information sometimes the President listens. She’s not a stubborn woman when it comes to make a decision," he said.

He said that as representatives, House members should make Mrs. Arroyo “feel the power of the people” to convince her to take the government into a new course, which is to save the country from poverty.

Speaker Prospero Nograles on Monday ordered the energy committee to conduct marathon sessions and pass pending measures that would ease the impact of increasing oil prices on Filipinos.

Nograles said that aside from the EPIRA law, Congressman Arroyo’s committee has yet to act on measures such as the Open Access in the Electric Power Industry; the Renewable Energy Resources Act and the Downstream Natural Gas Industry.

House records showed that only the EPIRA amendment has been submitted by the committee for plenary deliberation and is expected to be approved on third reading before Congress adjourns sine die on June 13.

"I already gave marching orders to the committee energy chair Rep. Mikey Arroyo to immediately convene his committee to address or avert effects of the energy prices due to oil price hike and to protect our people and our consumers at all cost," Nograles said.


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