Philippines wont suspend EVAT on oil

Malacañang remains firmly against the scrapping or suspension of the expanded value added tax (EVAT) on oil, saying the government can’t afford to let go of a major source of funds for its pro-poor programs and infrastructure projects. Legislators and various groups, including the Catholic Bishops’ Conference of the Philippines, have called on the president to lift the EVAT on oil in order to provide consumers with some relief from the rising costs of fuel and basic goods. Presidential Management Staff Director General Cerge Remonde said it was a tough choice for Arroyo to keep the EVAT on oil despite the popular clamor against it. The Department of Finance has estimated the excess revenues from the VAT on oil at around Php9 billion (US$198.8 million) in the first half of the year alone. (July 13, 2008)