SEVERAL groups are calling for the suspension of excise tax and VAT collections.

While this measue to counter the relenrless oil price hikes is available, it’s not the right solution to the problem.

For one, it could make the government lose a huge source of funding that helps marginalized sectors in times of crisis.

“The option to suspend taxes should be on a case-to-case basis,” said House Deputy Speaker and Davao City 3rd District Rep. Isidro Ungab.

Ungab said there is a need to study the proposal, or else the government might run out of funds, which might cause a big dilemma.

The collections from such taxes are already projected revenues in the budget. Thus, they are already allotted to finance major projects and programs of the government.

If government decides to suspend excise and VAT taxes, loss in revenue collection could reach P100 to 200 billion.

“I support 100% PBBM’s position to provide direct assistance or ayuda to those really affected by the rising oil prices than suspend the excise tax on fuel products,” he said.

PBBM is right in saying that reducing fuel excise tax does not necessarily help those who are directly affected by the energy crisis,” Ungab added.

The lawmaker is pushing for the reallocation of some amount in the budget to finance his proposed transportation cash subsidy.

Also called Transpo Ayuda, the proposal is for the benefit of public utility vehicle drivers and others such as farmers and fishermen badly hit by the oil price surge.

“The government may study the possibility of setting aside some projects and reallocate a portion of the budget, to be used as cash subsidies, or for Transpo Ayuda, for our kababayans to obtain some assistance during this crisis,” he said.

“We acknowledge that everyone is feeling the brunt of these oil price hikes, but the ones suffering the most are those in the transport, farming, and fisheries sectors,” Ungab, a former House Appropriations chair, pointed out.

Ungab’s proposal is in consonance with President-Elect Ferdinand Marcos Jr.’s plan to give direct assistance or ayuda to help mitigate the impact of the continued oil price hikes.

“I agree with President Elect BBM’s directive of finding the most viable solution to this financial distress our kababayans are experiencing now, and at the same time, the government must ensure that this will not be to the detriment of our country’s economic stability,” Ungab said.

Ungab recently issued an economic alert warning, calling on all Filipinos to be prepared and to budget their income and expenses for the next months, as the country braces itself for turbulent economic times ahead.

Ungab has also aired his support for President-elect Ferdinand Marcos Jr.’s plan to set a stimulus package in the 2023 national budget, which according to Ungab, shows President-elect’s clear determination to rebuild our country’s economy.

Everyone should unite and help the incoming administration to be able to overcome economic woes and adversities.

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