Lifting the 12% VAT on oil is a propeople response to the oil price crisis

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Lifting the 12 VAT on oil is a pro-people
response to the oil price crisis
Prepared by Bagong Alyansang Makabayan Senate
committee on ways means public hearing January
23, 2008
2
Bayan supports the proposal to lift the 12 VAT
on oil products because

• Oil prices are now very high and seriously
  undermine the already insufficient livelihood and
  already low wages/income of ordinary Filipinos.

3
Bayan supports the proposal to lift the 12 VAT
on oil products because

• Together with the Oil Deregulation Law, the 12
  VAT on petroleum products is among the major
  factors that unjustly increase local pump prices.

4
Bayan supports the proposal to lift the 12 VAT
on oil products because

• Lifting the 12 VAT on petroleum products will
  immediately translate to concrete benefits to
  thousands of poor families.

5
Oil price hikes
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Direct impact on jeepney drivers
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Direct impact on tricycle drivers
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Direct impact on small fishers
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Direct impact on households
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Direct impact on households
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Lifting the 12 oil VAT immediately directly
translates to concrete benefits to thousands of
poor Filipino families
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For the jeepney drivers

• Income will increase by around P123 per day
• Will benefit around 426,572 drivers
• Or around 2.1 to 2.6 million individuals

Sources of basic data DOE report on oil prices
LTO report on total number of registered public
utility vehicles from Jan-Nov 2007 assumes a
unit-driver ratio of 12 assumes number of
family members at 5-6 per family
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For the tricycle drivers

• Income will increase by around P19 per day
• Will benefit around 581,578 drivers
• Or around 2.9 to 3.5 million individuals

Sources of basic data DOE report on oil prices
LTO report on total number of registered
motorcycles/tricycles for hire from Jan-Nov 2007
assumes a unit-driver ratio of 11 assumes
number of family members at 5-6 per family
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For the small fishers

• Income will increase by around P24 to P49 per
  fishing trip
• Will benefit around 708,000 small fishers

Sources of basic data DOE report on oil prices
Pamalakaya estimates that there are 177,000
motorized bancas nationwide that have a capacity
of 4 fishers per unit assumes number of family
members at 5-6 per family
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For LPG users

• LPG cost will go down by around P59 per 11-kg
  tank
• LPG spending will go down by around P169 per
  month
• Will benefit around 8.6 million households
• Or around 43.1 to 51.7 million individuals

Sources of basic data DOE report on oil prices
NSO Household Energy Consumption Survey, Oct
2004 IMF Working Paper on Distributional
Implications of the VAT Reform on the
Philippines, Jul 2007 assumes number of family
members at 5-6 per family
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For kerosene users

• Kerosene spending will go down by almost P20 per
  month
• Will benefit 9.4 million households
• Or around 47 to 56.4 million individuals

Sources of basic data DOE report on oil prices
NSO Household Energy Consumption Survey, Oct
2004 IMF Working Paper on Distributional
Implications of the VAT Reform on the
Philippines, Jul 2007 assumes number of family
members at 5-6 per family
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Lifting the 12 oil VAT is an urgent measure that
could provide respite to people battered by ever
increasing cost of living, low wages and income,
and job scarcity
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CANCEL THE 12 OIL VAT NOW!