CBCP to government: Review oil deregulation, e-VAT laws

Posted on July 8, 2008 by jaggerkieth
MANILA, Philippines – The Catholic Bishops Conference of the Philippines (CBCP) on Monday called for the immediate review of the oil deregulation law and the expanded value added tax (e-VAT) being imposed on products.

This was revealed by Jaro Archbishop Angel Lagdameo during a press briefing after their plenary assembly.

“Out of sympathy for them [public], kailangan ma-review ang batas sa pagtaas ng bilihin, lalo na gasoline,” Lagdameo, the CBCP president, said.

Lagdameo said the CBCP favors the proposal to review the oil deregulation and e-VAT laws to establish its connection to the continued hike in the prices of basic commodities and services.

The CBCP president pointed out that the public specially the poor sector of the society are the mostly hit by the price hikes and bearing the burden of paying the high cost of fuel and foods.

This was echoed by Manila Auxiliary Bishop Broderick Pabillo who said that the review must determine if the laws really helped the poor.

He stressed that the e-VAT law actually benefits the government more since it helps them increase their tax collection.

However, he said that it is the poor that suffers much.

“We should seriously look at it [e-VAT and oil deregulation] if it really helped the people,” Pabillo said.

The Oil Deregulation Act was enacted by the 10 Congress in 1998 to supposedly level the playing field in the oil industry which was being monopolized by a cartel composed of the major oil players – Petron Corporation, Pilipinas Shell and Chevron Philippines.

Under the Oil Deregulation Law (Republic Act No. 8479), the government shall not interfere with the pricing, exportation and importation of oil products, nor with the establishment of retail outlets (gasoline stations); storage depots; ocean-receiving facilities and refineries.

Since 2004 there had been clamor to scrap the oil deregulation law as it didn’t really open up the market and lower oil prices.

The remarks of the bishops came at the end of the 97th Bishops’ Plenary Assembly that opened at the Pope Pius XII Catholic Center.

There were four topics that were prominently discussed by the bishops.

These included environmental crises, genetically modified food and mining.

Oil companies have increased their prices 18 times this year.

At present, prices of gasoline have breached the P60 per liter level while diesel and kerosene are also nearing the P60 per liter mark. – GMANews.TV

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