The Confederation of Truckers Association of the Philippines (CTAP) is seeking the suspension of the 12% value-added tax (VAT) on tollways, scheduled to be imposed on October 1, calling it “untimely and not economically viable”.
“For a period of 17 years since the enactment of the expanded VAT law, toll fees were exempt from the 12% VAT… to impose it now on will be improper and unconscionable,” CTAP president Ruperto Bayocot said in a position paper addressed to Tollway Regulatory Board executive director Manuel Imperial last week.
The letter was also signed by CTAP chairman Colonel Rodolfo de Ocampo and adviser former General Edgar Aglipay.
“Tollway operators are not absorbing the impact of the VAT imposition because the same is passed on to the toll users. As a consequence, prices of goods and commodities passing through the tollways will certainly go up and the consuming public will eventually suffer and sad to say, the poor (will just) become poorer,” Bayocot said in the letter a copy of which was provided to PortCalls.
“CTAP is not against the government’s idea of raising revenues nor does it oppose its thrust towards economic upliftment and poverty alleviation. If CTAP registers its opposition against the imposition of the 12% VAT on toll fees, it is simply because it finds the exaction improper, untimely and not economically viable.”
Even before the Supreme Court decided in favor of the imposition of the VAT on tollways, CTAP said the additional cost will simply be passed on to clients.
The tax collection measure is expected to net government P2 billion a year.
Photo by yellowbird479
