No price hike in basic goods despite VAT on toll — Palace By Virgilio J. Bugaoisan 10/01/2011

No price hike in basic goods despite VAT on toll — Palace

By Virgilio J. Bugaoisan 10/01/2011

Even with the implementation of the value added tax (VAT) on toll starting today, Malacañang downplayed claims that this would jack up prices of basic commodities and may even warrant a fare increase in public utility vehicles plying along tollways.

At a press briefing yesterday, presidential spokesman Edwin Lacierda said there’s nothing to worry about even if toll rates would now be higher by 12 percent as a result of the VAT on toll because “the effects on transport fare and goods of the tax measure would be minimal.”

“The effect on goods, or the effect on passenger buses and the effect on passengers will be very insignificant,” Lacierda said as he noted that “any incremental increase in fares would be shared by passengers and the effect would be minimal.”

But while allaying fears that the effect of the VAT on toll would be hardly felt by the public, Lacierda raised the possibility that some traders might take advantage of the situation and jack up their prices..... MORE

Source:  The Daily Tribune

URL: http://www.tribuneonline.org/metro/20111001met1.html