Angara warns suspending E-VAT will deplete subsidy for food, electricity
MANILA,
July 12 (PNA) - Sen. Edgardo J. Angara on Thursday warned that
suspending the expanded value added tax (E-VAT) on oil will deplete
government resources for food and electricity subsidies.
He said the proposal to scrap the E-VAT on oil requires a serious study because of its implication.
"If
you remove the E-VAT on oil, government will lose its lifeline for
subsidies on rice and electricity. Government is faced with a difficult
choice. Hence, it should seriously study the effects of repealing the
E-VAT on oil," he said.
Instead
of scrapping E-VAT on oil, Angara said the government should seek ways
to cushion the country from the impact of the oil price hike by
exploring alternative energy sources.
He
urged the government to encourage local entrepreneurs to venture into
the development of alternative energy resources for the country to
lessen its dependence on imported fuel.
"There
is a need now more than ever to explore our alternative sources of fuel
and energy. Solar, geothermal, hydro and wind energy are proven power
technologies, for which we have great and untapped potential," he said.
According
to the study conducted by the Renewable Energy Coalition, if the
country saves even half of its net oil imports, it can use this amount
for social and infrastructure programs such as: sending 17 million
children to elementary school, building 250,000 classrooms, putting up
135,000 health centers, feeding 14 million families, and building
38,000 farm-to-market roads. (PNA)
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