Finance Secretary Margarito Teves said that the power to suspend the Expanded Value Added Tax (EVAT) on oil rests exclusively on Congress.
Teves was reacting to the call of Catholic Bishops Conference of the Philippines (CBCP) and some opposition leaders for the lifting of the 12 percent EVAT on oil products.
“Such proposal, however, would mean P73.1 billion in foregone revenue which the government could otherwise use to fund programs to help the poor cope with rising oil and food prices,” Teves said in a statement.
He said the DOF studies also show that suspending the VAT on oil will largely benefit the rich because they are the biggest consumers of oil while most of the consumption of poor families are VAT-exempt such as agri food products.
The finance secretary, however, said “we would welcome the opportunity to discuss with CBCP our position on this issue and work with them in looking for ways to alleviate the impact of rising oil and food prices on our people, especially the poor.” (PIA/Bohol)