The Catholic Bishops' Conference of the Philippines (CBCP) has urged the government to review the economic policies that affect prices, especially the 12-percent expanded value-added tax (VAT) and oil deregulation, to help the country's poor combat record high inflation, local media reported Tuesday.
The bishops led by the CBCP president Jaro Archbishop Angel Lagdameo said it was "high time" that the government reconsidered its economic policies, the national newspaper Philippine Daily Inquirer said.
"We are in favor for an economic review, especially those pertaining to the rise in prices, because the poor are feeling the brunt of it. Out of sympathy for them, there must be a review of all our laws related to prices of goods, like gasoline," the report quoted Lagdameo as saying at a press conference.
Lagdameo said the government should especially review the laws on VAT and oil deregulation, according to the paper.
The current laws burden 12-percent VAT on oil consumers and allow oil companies to raise prices without government intervention.
On last Saturday, pump prices in the Philippines were raised for the 18th time in the year, with gasoline prices hitting 62 pesos (1.33 U.S. dollar) a liter.
Pedro Quitorio, the CBCP spokesperson, said it was the first time that the CBCP leadership spoke against the oil deregulation law.
The government on Monday said it was noncommittal to the CBCP call but the proposal of the bishops would be referred to the Cabinet economic managers.
The administration had rejected calls to junk oil VAT, saying that the VAT revenues generated from oil consumers, mostly middle-class residents, can be better used to subsidize the poorer population.
The government plans to set aside 4 billion pesos (88.9 million U.S. dollars) from oil VAT revenues to subsidize small electricity bill users, students from low-income families, and public transport owners who are willing to switch to using more liquefied petroleum gas and compressed natural gas as fuel.
Source:Xinhua
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