The Bureau of Internal Revenue has found an ally in the senate when it comes to the collection of value-added tax (VAT) on the use of toll roads.
Sen. Franklin Drilon was quoted saying he is "not in favor of the resolution" to suspend the imposition of VAT on toll as well as the fare hikes on Metro Manila's mass rail transit systems.
The collection of the 12-percent VAT on toll is scheduled to take effect on October 1. At the House of Representatives, two lawmakers have already filed bills in an attempt to stop government from collecting VAT and adding to the public's financial burden.
Sen. Joker Arroyo reportedly said a resolution calling for the suspension of impending fee increases is already circulating at the senate.
"The idea is not to proceed...not now. Mahirap ang buhay ngayon," Arroyo said in the report.
Drilon said, however, that if government wants to continue providing subsidies and services to the poor, VAT on toll and added fees in fares are necessary to have enough funds. Your thoughts?